Social media accounts after a franchise agreement ends: what franchisors need to know

Fiona Boswell, solicitor in the specialist franchise team at Knights plc, explains how social media accounts can become a disputed asset when a franchise relationship ends - and the legal routes franchisors can take to recover them

franchise social media accounts

Social media is a valuable asset for any franchise business large or small. It can provide the business with a direct and widespread platform to connect with their customers or clients and build brand awareness.

Whether a franchise relationship comes to an end due to retirement or expiry, or for other reasons, having a social media account linked to your brand in the wrong hands can cause serious implications and can be easily avoided.

Social media accounts can be overlooked by franchisors when handling the end of a franchise relationship so it is vitally important to ensure that the exiting franchisee transfers over the page’s ownership during the process.

However, it is worth noting that the terms of service or terms of use of certain social media platforms can prohibit the transfer of social media accounts and doing so could result in the account being terminated. Therefore, its crucial to ensure that during the exit process the exiting franchisee provides the franchisor with access to the social media pages through updating the account details rather than requiring that the social media account be assigned. The specific process of changing the account varies from platform to platform so it is worth checking what is needed before the handover takes place.

What happens when the relationship ends on bad terms?

What happens if the franchisor is not on good terms with the exiting franchisee and the page remains in their ownership? Has the franchisor lost control? It does depend firstly on the social media platform, but there are avenues to consider to either get the page back or taken down permanently.

Filing a trademark report

If the number of followers on the page is not significant then you may wish to consider filing a trademark report to the social media platform. If the social media page contains a registered trademark in the page name or title, or even if the trademark has been used on posts, then there could be grounds to submit a trademark report.

Meta which owns Instagram and Facebook have dedicated teams that handle intellectual property infringement provided that there is actual infringement. Once the report is filed, Meta can either remove the page or take down the infringing content.

Recovering accounts with a significant following

Nonetheless, if the page has a significant number of followers, then this is a valuable asset and it may be worth considering options to get it recovered. How this is done does depend on the platform in question and could involve getting the social media platforms consent, providing proof of ownership or even obtaining a court order.

Therefore, if you are in any doubt as to what steps are needed then get in contact with our dedicated Franchising Team who will be able to advise and guide your business with the correct approach.

Key takeaways

  • Social media accounts are a valuable business asset that franchisors can overlook when a franchise relationship ends, so it is vital to ensure the exiting franchisee transfers over the page’s ownership during the exit process.
  • Some platforms’ terms of service prohibit transferring accounts, and doing so could see the account terminated. It is safer for the exiting franchisee to give the franchisor access by updating the account details rather than assigning the account.
  • If the relationship ends on bad terms and the page stays with the former franchisee, the options depend on the platform, but there are routes to either get the page back or have it taken down permanently.
  • Where a page has a small following, a trademark report may be the answer if a registered trademark appears in the page name, title or posts. Meta, which owns Instagram and Facebook, can then remove the page or take down the infringing content.
  • Where a page has a significant following, it may be worth recovering. Depending on the platform, that could involve the platform’s consent, providing proof of ownership or even obtaining a court order.
ABOUT THE AUTHOR
Fiona Boswell
Fiona Boswell
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