Archive for April, 2011
Franchising Vs. Licensing a Business
FRANCHISE VS. LICENSE
What’s the difference between franchising vs. licensing a business? Is a license business model really different from a franchise business model? Whether you’re a franchise attorney or not, the starting point in any analysis is to consider the legal aspects, then the business aspects. This article focuses on the legal aspects. A franchise always includes a license of the brand and operating methods, along with assistance (training, an operations manual, etc.) or support (providing advice, quality control, inspections, etc.). A license that is supposedly “not a franchise” but contains these elements, is a disguised, illegal franchise with significant legal ramifications and risk.
REGULATORY BACKDROP
Tags: business endeavors, business franchise, financial commitments, franchise attorney, franchise disclosure, legal principle, legal ramifications, money changes hands, protection mechanisms, quality control inspectionsRelated posts