Franchise, Trademark, and Tradename Fees (2024)

FAQs

How much does it cost to trademark a brand name? ›

Fees to trademark a business name

When filing an application to trademark your business name on a federal level through the USPTO, you should count on paying between $250 and $750. According to the USPTO website, the trademark fees you'll pay depend on: The number of trademarks you seek.

The franchise fee covers the cost of your application, training, initial marketing and advertising, sales commission and general costs incurred by the franchisor's corporate team in getting you all set up.

If you pay franchise, trademark, or trade names fees, these costs generally are considered deductible business expenses. Entrepreneurs who launch entirely new businesses may incur tradename or trademark fees as they attempt to uniquely identify their business and / or their products.

The cost to trademark a phrase is between from $250 to $350 per trademark class. This is the cost to submit your trademark application to the USPTO. The easiest way to submit an application to register your trademark is online, through the USPTO's Trademark Electronic Application System (TEAS).

By researching and registering your trademark, you ensure that you won't unknowingly conduct business in infringement of an existing mark, potentially exposing yourself to being liable for damages. You also prevent wasted time building brand equity that may be lost if you're forced to change your business name.

The cheapest way to trademark a name is by filing with your state. The cost varies depending on where you live and what type of business you own. If you are a corporation or LLC, you can expect to pay less than $150 in most cases, while sole proprietors and contractors can pay anywhere between $50 to $150.

Franchise royalty fees typically range from 4% of your revenue to 12% or more based on the type of franchise business. For example, a food franchise is a high-volume business where many customers buy individual items. Thus, it's not uncommon for the franchise to exceed $1 million in annual revenue.

These fees will be influenced by many factors, including the length of the term of the grant, the history of success of the franchise system, the amount of training and initial support to be provided by the franchisor and the level of additional investment required of the franchisee.

By joining a franchise, an investor or franchisee is able to run a business under the umbrella of the franchise. The franchisee must pay a franchise fee, which may become costly. In the United States, it may amount to thousands of dollars.

After mark registers

Filing Declaration of Use and Application for Renewal every 10 years (Combined §8 declaration and §9 renewal): $525 per class (if filed before the grace period). Filing Declaration of Incontestability (§15 declaration): $200 per class.

Are trademark fees annual? ›

Renewal Fees: Trademark registrations are typically valid for a specific period, after which they must be renewed to maintain protection. Renewal fees can vary by country and are typically due at regular intervals, such as every 10 years.

Franchise Specific Tax Deduction Tips

Note: Franchise fees are categorized as Section 197 Intangibles by the IRS and are not immediately tax-deductible. The IRS requires you to amortize the franchise fee over 15 years. This allows you to recover the cost over time for tax purposes.

Is There Such a Thing as Free Trademark Registration? No. To register a trademark, you must pay a non-refundable government filing fee to the United States Patent and Trademark Office (“USPTO”). So, free trademark at the federal level is not an option.

You protect a phrase by trademarking it. With a trademark, you can prevent competitors from using your phrase in connection with their products or services. Phrases are not copyrighted. If you have a service and want to protect a phrase that you use to brand it, you would need a trademark.

You can't register a trademark for non-business purposes. You can only trademark a brand name that you're using in business or that you intend to use in business in the near future. You can't register a generic or descriptive name. Your trademark name has to be distinctive or unique in some way to be approved.

In the United States, a trademark can last forever, so long as it is used in commerce and renewed on time every ten years. To renew a registered trademark, the owner must file the maintenance documents with the United States Patent Trademark Office (USPTO) and meet certain legal requirements.

There are filing fees associated with filing your initial federal trademark application. Those range from $250-$750 and can add up quickly.

You can also register a trademark for your logo with the Secretary of State in the state where you will be using the logo. Doing so protects your rights only within that state, so the logo can be used by others in other states. The third and most expensive option is to file a trademark application with the USPTO.

You can register a logo with the USPTO by using the Trademark Electronic Application System (TEAS) or other online trademark service. If your logo includes design elements, you will need to upload an image, using a . jpg file, of the logo as part of your trademark application.