Trading names...taking over a small business

kitty198

Hi all,

Wondered if anyone can advise, I am in the process of taking over a small bakery business which previously had another shop selling sandwiches. The 'sandwich shop' was sold off a couple of years back, initially to someone related to the bakery owner and then sold again to a thrid party. They now run as a (frankly, not very successful) deli. The concern is that they trade under the same business name as the bakery I'm purchasing.

So I will be trading as Bramley Village bakery (for example) and the 'deli' trades as Bramley Bakery...... the business I have bought is very succesful and has been trading under this name for many years and confusion is such that the bakery is now recieveing phonecalls to enquire if we are still a bakery or now a deli.

The 'deli' is nothing to do with the business I'm purchasing and I have no desire to be associated with it.
Given the business I;m buying has been trading under the Bramley Village BAkery name for some 30 yrs and the deli has had their name only 3 yrs, is there any legal route I can take to get them to change their name?

Any advice appreciated.

CKhalvashi

The first question here, is who owns rights (if anyone) to a limited company in this name?

Unfortunately, the game will work as it will, but when you take the business over, have a dormant Ltd to one side, and if they mess up further, this may be the time to take action.

CK

Mistral001

Are you buying the name with the business? The name might not be worth all that much if there is a shop of a silimlar name in the same area. As to whether you can actually get the other shop to change their name after you buy the business you are planning to buy, well it is unlikely they will do it just because you ask politely. thus court action will probably be required. As to what way that would go you would need to discuss the actual names with a solictor expert in commercial law.

kitty198

Thanks for that, the business is currently a sole trading business not a ltd, the name only bothers me as there is a good reputation attached to the name... the vendor of the business hasn't been very helpful as the sale of the other business that became a deli was to a family emmeber in good faith who went on to sell it on at a profit within the first year of trading.

I am loathed to change the trading name of my business as the reputation is so solid and its named after the village in which i trade, whereas the 'deli' isn't even in 'Bramley'.

anamenottaken

kitty198 wrote: »

Thanks for that, the business is currently a sole trading business not a ltd, the name only bothers me as there is a good reputation attached to the name... the vendor of the business hasn't been very helpful as the sale of the other business that became a deli was to a family emmeber in good faith who went on to sell it on at a profit within the first year of trading.

I am loathed to change the trading name of my business as the reputation is so solid and its named after the village in which i trade, whereas the 'deli' isn't even in 'Bramley'.

I think CKhalvashi was suggesting YOU set up a private limited company with the business's trading name in order to protect your business if you buy it.

Pennywise

kitty198 wrote: »

Given the business I;m buying has been trading under the Bramley Village BAkery name for some 30 yrs and the deli has had their name only 3 yrs, is there any legal route I can take to get them to change their name?

Only if your contract when buying the bakery gives you the exclusive right to the name. That can only happen if the seller currently has some kind of legal hold over the name, which seems unlikely if he sold the deli and allowed it to carry on using that name.

Even if you did find youself with legal right to use it, it's a long and painfully expensive process to go via the courts to get the deli to stop using the name. Do you have that kind of patience and money?

To be honest, I'd be more worried about whether the Deli has any rights to stop you trading under that name - they may have something in their contract giving them exclusive right to the name!

At the end of the day, the only thing that matters is the contract/paperwork when the deli was first sold and then on it's subsequent sale. If the contract required them to change their name, then you "MAY" have some grounds, but if it was silent or allowed them to use the name, then you've no grounds.

I'd suggest you buy it with your eyes open - i.e. you either accept two businesses with similar names, or you change the name of yours.

CKhalvashi

anamenottaken wrote: »

I think CKhalvashi was suggesting YOU set up a private limited company with the business's trading name in order to protect your business if you buy it.

Yes, this was the point I was trying to make.

I set up as Sole Trader as *** Media in 2004, and had the dormant *** Media Ltd incorporated in May 2004 with myself and OH as shareholders (about a month after setting up), which became active in 2006.

Someone did try to set up the same business, using a very similar name in 2005, and having been able to prove on government records that I owned the name and company since 2004 really helped.

CK