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, the franchisor must disclose certain information to the franchisee before the franchise is purchased.

As a partnership focused on franchise law and with more than 35 years of combined experience, we can help you determine if your license is actually a franchise arrangement. Contact us, Mario L Herman and Gregory O Herman, to learn about your options and discuss franchise 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 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, we can help you. While federal law does not provide a cause of action for franchisees, state law may provide a solution. We can help you determine if you have a claim against the franchisor/licensor for deceptive business practices or unfair trade. Mario Herman has helped clients in more than 40 states across the United States and in more than 10 foreign countries with franchise issues.

Contact Mario L Herman and Gregory O Herman — Franchise Law Attorneys

To learn more about the differences between a license and a franchise, please read Mario Herman’s article on when a license is really a franchise. To schedule a consultation to discuss licensing law, franchise law, or arbitration, contact us.