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As the boutique fitness market continues to rapidly grow, entrepreneurs who want to take their fitness brands to the next level face many options. Each potential method of expansion has benefits and risks that must be considered.
This article is the second entry in a two-part series that explores brand expansion through the following topics: defining your concept, protecting your brand and expanding through direct corporate ownership and investment. This article focuses on two avenues for expansion: licensing and franchising. Each of these options can be useful tools in delivering your fitness brand to a greater audience and enlarging your reach.
Licensing
Your brand is represented by the intellectual property and goodwill associated with your company. As you expand your fitness empire, you should consider the use of a license agreement to ensure affiliates’ consistent use of your brand. License agreements will allow you to define the nature, manner and scope of use of your fitness brand throughout the empire.
Under a license agreement, you contractually authorize affiliates to use your intellectual property. You can specify the intellectual property to be used (including trademarks, copyrights, patents and trade secrets), outline specific instances in which affiliates may use the intellectual property and impose additional conditions on use of the intellectual property. You should also consider incorporating royalty terms into the agreement to define expected compensation for use of your brand.
Overall, an ironclad license agreement will help protect the goodwill associated with your brand, with...