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Intellectual property · Technology · Digital assets — Lithuania & Estonia

When a franchise partner leaves with the sign: what to do first

The first step is a written notice, not a court filing. Send the departing partner a formal letter that cites the registered mark and the terminated agreement, and record every remaining instance of the sign in use. Check separately whether branded goods are crossing a border, because that opens a distinct enforcement route that runs on its own clock.

Legal basis

The exclusive right in the sign belongs to its proprietor under Regulation (EU) 2017/1001 (EUTMR). The proprietor, not the former partner, decides who may use the mark once the franchise agreement ends. Continued use after termination has no independent legal footing of its own.

If branded stock is moving across an external border of the EU, Regulation (EU) No 608/2013 lets the proprietor ask customs to intercept it. That route works alongside any court action, not instead of it.

Practical consequence

Every week the sign stays visible on the departing partner's premises, packaging, or website weakens the evidentiary position later. Customers keep associating that location with the brand, and a court eventually has to unwind that association. The longer unauthorised use runs unchallenged, the more room it gives the other side to argue acquiescence.

What to do first

  1. Freeze the record. Someone on the proprietor's side photographs and dates every visible use of the sign — signage, packaging, website, social media — before any contact is made.
  2. Send a written notice. In-house counsel or appointed counsel issues a letter stating the termination date and a fixed removal period, tied to the franchise agreement's own terms.
  3. Check the goods flow. If branded stock is shipped or sold across a border, the proprietor files an application for action with the competent customs authority under Regulation (EU) No 608/2013.
  4. Confirm the register position. The proprietor verifies that the registration is current and that no recorded licence still names the departing partner.
  5. Escalate only after the notice period lapses. If the sign is still in use once that period runs out, counsel prepares an application for interim relief before the competent court.

Who decides, and on what evidence

Three separate questions arise, and three different bodies answer them. None of the three waits for the others to move.

QuestionDecision-makerEvidence relied on
Whether the notice period has lapsedThe parties, by reference to the terminated agreementDated correspondence and the termination clause
Whether unauthorised use of the sign continuesThe competent national courtPhotographs, invoices, website archives
Whether goods are stopped at the borderThe customs authorityThe application for action and the registration certificate

Forks

If the former partner also runs a shared website and has moved its hosting to another region, that is a technical dispute running in parallel to the trade mark question, not a substitute for it — see When a hosting provider changes region: what to do.

If the same mark was also filed abroad and a validation step was missed there, that gap predates the franchise's end and needs its own timeline — see When a validation deadline was missed and its limits.

If the franchise network also runs on tokens carrying voting rights over shared digital assets bearing the brand, that governance question sits outside the trade mark dispute and needs separate handling — see When a token gives voting rights and its limits.

Limits

This page does not calculate what can be established for a specific mark, class, or territory. That depends on the exact register entry and the wording of the terminated agreement, neither of which this page can see. For a structured view of what an asset position could support in one jurisdiction, see Asset in United Kingdom step by step.

Verified

Checked on 18 March 2025. Sources: Regulation (EU) 2017/1001 (EUTMR); Regulation (EU) No 608/2013.

Related publications

A related situation, resolved the same way — by sequence, not by first resort to court: What to do first in this situation and who.

Frequently asked questions

What is the first step when a franchise partner leaves with the sign?

Send a written notice before considering any court filing. The notice should state the termination date, reference the registered mark, and set a fixed period for removal of the sign, drawn from the franchise agreement itself.

Which deadline is already running?

The removal period set in the terminated franchise agreement starts running from the termination date, not from the date the notice is sent. Where the agreement is silent, the clock still runs from termination, and delay in sending the notice does not pause it.

Who decides, and on what evidence?

Three separate decision-makers can be involved. The parties themselves settle whether the notice period has lapsed, by reference to the agreement. A competent national court decides whether unauthorised use continues, on photographic and documentary evidence. A customs authority decides whether goods are stopped at the border, on the application for action filed under Regulation (EU) No 608/2013.

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