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License vs. Franchise

U.S. Licensing Law Lawyer

Often, there is a fine line between a license and a franchise. In franchise and licensing law, however, there is a significant difference between the two types of arrangements. For example, in a franchisor/franchisee relationship, a franchisor has to disclose certain information to the franchisee prior to the purchase of a franchise.

As a franchise lawyer with more than 25 year of experience, I can help you determine if your license is actually a franchise arrangement. Please consult a skilled U.S. licensing law attorney or franchise lawyer to learn more about the difference between both areas of law. Contact me, Mario L. Herman, to learn about your options and to discuss franchisee law.

When Is a License Actually a Franchise?

Under federal law, a franchise exists when the parties are in a continuing commercial relationship and the franchisor:

  • Promises to provide a trademark or other commercial symbol

· Promises to exercise significant control or provide significant assistance in the
operation of the business

  • Requires a minimum payment of at least $500 during the first six months of operations

When those elements are met, a franchise exists, regardless of how the parties refer to their relationship.

What Remedies Are Available to Me?

If you have a franchise, disguised as a license, I can help you. While federal law does not provide a cause of action for franchisees, state law may provide a solution. I can help you determine if you have a claim against the franchisor/licensor for deceptive business practices or unfair trade. I have helped clients in more than 40 states across the United States with franchise issues and in more than 10 foreign countries.

Contact Mario L. Herman — Franchise Law Attorney

To learn more about the differences between a license and a franchise, please read my article on when a license is really a franchise. To set up a consultation to discuss licensing law, franchise law or arbitration, contact me.

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