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Franchisors Must Prepare for Pending Introduction of New Top-Level Domains

By Ryan Kaatz and Brian Schnell

In only a few short months, franchisors must choose whether to register a top-level domain (TLD) that corresponds with the franchisor's trademark or company name. Similar to current TLDs .com, .net, and .org, new TLDs like .hilton, .coke, or .merrilllynch will be available. A franchisor's choice must balance potentially significant commercial, advertising, and security opportunities with substantial financial and technological investment.

Potentially, a franchisor could register the TLD that corresponds with the franchisor's trademark or company name. It then could consider registration of additional domain names associated with that TLD. For example, a hotel chain such as Hilton could register the TLD .hilton and then pursue additional domain name registrations based on the geographic location of its hotels, such as www.minneapolis.hilton. A TLD incorporating a franchisor's trademark or company name could benefit the franchisor and franchise network through new marketing, advertising, communications, and security opportunities, but those opportunities do not come without substantial costs and risks.

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