reflects the history of the area they usually do business in. No matter what, keep in mind that you’re creating a new brand, so make sure the name is memorable and has positive connotations. (And if it contains a foreign word, make sure it doesn’t mean something bad in another language!)
Before you fall in love with the name you’ve chosen and rush out to print business cards and start advertising, you need to do a little research. You need to make sure that name you really like isn’t already registered by someone else. Bypassing this step can mean fines for copyright infringement, plus having to spend time and money to change your name. (A U.S. trademark or service mark costs $325 – a drop in the bucket compared to the cost of defending your name in court later.)
❯❯ Do any trademark registrations exist that may prohibit you from using your proposed name?
❯❯ Is your proposed name eligible for registration with the United States Patent and Trademark Office (USPTO) so you’ll be able to enforce and defend your name?
❯❯ Does your proposed name infringe on any common law trademark rights?
You can start your research on your own by searching online; just type your desired name into your favorite search engine and see what pops up. In addition, some professional search organizations, such as Legal Zoom (www.legalzoom.com), specialize in doing research on company names.
A search of the USPTO’s trademark records (www.uspto.gov) is also a good starting point because it helps you identify trademarks that were previously granted or denied registration. If any registered trademark is identical to your proposed name or might lead to consumer confusion, you may be infringing on another’s trademark. (Note that the test for trademark infringement doesn’t require two names to be identical but only confusingly similar to the consumer; the spelling doesn’t have to be the same.)
During your investigation, you may notice that certain descriptive terms and geographic designations aren’t eligible for trademark protection; this is because the underlying policy of the USPTO is to allow business owners to use descriptive terms and names to describe their businesses. For example, “Los Angeles Tacos” would likely be refused trademark registration because “Tacos” is descriptive of the food and “Los Angeles” names the location. This issue is prevalent in the food service industry because many restaurant and food truck owners choose names with descriptive terms, such as “Bar and Grill,” “Mediterranean Cuisine,” “Denver Steakhouse,” and so on. Therefore, to increase your chances of obtaining registration through the USPTO (which is a great tool for future expansion because it provides legal protection throughout the United States), use fewer descriptive terms and geographic designations. Instead, consider a unique alternative, such as making up a word.
Be aware that other food trucks or restaurants that haven’t secured federal trademark registrations may still acquire common law rights within limited geographic regions through their use of a name. In this case, you may be prohibited from using a similar name within a given region. With this point in mind, search online to find businesses that haven’t registered their trademarks through the USPTO but may still have common law rights.
If the name you’ve decided on is available, register it with your state’s Secretary of State office, then register it with the USPTO. After your trademark is registered, it stays registered to you as long as you file a renewal every ten years.
Another Possibility: Joining a Franchise
For many would-be food truck owners who have little to no business background, a food truck franchise can present the perfect opportunity to open their own food truck due to the ease in replicating their menu items and service. Mobile food franchises offer a lot of benefits, such as instant name recognition and built-in marketing. However, buying into a food truck franchise isn’t always as easy as you may think. You find out the pros and cons of joining a franchise in the following sections; I also point you toward more information if you decide that franchising is the best option for you.
The advantages of running a food truck franchise include the following:
❯❯ Fewer upfront decisions: A franchise opportunity offers you an instant business. You don’t have to worry about the name, the truck’s design, or the menu.
❯❯ Professional support: Almost all franchises come with support from the corporate office. You’re given a direct conduit to corporate staff who can address any questions or concerns you may have. This support can be very helpful for newcomers to the mobile food industry who may not always know what to do when they encounter certain problems.
❯❯ Name recognition: Name recognition is a huge benefit of a food truck franchise. Whereas other food truck start-ups may want to run some advertising before they hit the streets just to get some name recognition, you won’t have to worry about this.
❯❯ A big price tag: Buying a franchise can be expensive. Larger restaurant chains that offer franchise opportunities for food trucks can require upwards of half a million dollars in assets before they’ll consider letting you buy into their company. Of course, the theory is that you’ll make all your initial investment money back sooner than if you were to start an independent food truck.
❯❯ Less say in the concept: You have no say in the menu or the truck’s design. If you have a certain theme or concept in mind, it may not fit the expectations of your franchisor.
❯❯ Detailed rules to follow: In order to maintain customer service expectations, franchises have many rules and regulations you must follow. Everything from the uniforms your staff wears to the brands of condiments you use can be subject to their rules. Failure to follow the rules can result in losing your rights to the franchise.
❯❯ Royalties
