Franchisor Beware: Registered Trademarks Does Not Mean Impunity from Priority Local Use Challenge
Federal trademark registration is the Holy Grail for companies, especially franchises, looking to expand their footprint and access a national audience. But even though trademark registration confers on owners certain exclusive rights and benefits, such as constructive national notice of use, protects against registration of confusingly similar marks, provides notice of ownership, and enables recovery of statutory and exemplary damages in appropriate cases, it does not extinguish the rights of an owner of a substantially similar mark who has used the mark in commerce prior to registration. This can be especially problematic for growing franchises that have built their business on a recognizable name and charge significant fees for franchisees to use that name in running a local franchise location.

Home to nearly 9 million people, New Jersey is now the epicenter of the green rush hitting the East Coast. Investors, businesspeople, professionals, operators, pharmacists, doctors, and entrepreneurs have their sights set on what is predicted to be a billion-dollar adult use industry in the Garden State. Easily accessible to those living in New York City (8.4 million population) and those residing in Southeastern Pennsylvania (3+ million population), New Jersey stands ready to embrace the cannabis movement sweeping the nation. With limited licenses carrying unlimited potential for growth and profit, the emerging adult use marijuana market in New Jersey is slated to be one of, if not the most, competitive cannabis markets in the country.