What Is The Difference Between A Franchise And License Agreement

This can result in a business being profitable comparable to a licensing agreement and operating a franchise. The level of control you exercise refers to your ability to significantly guide or limit the franchisee`s business plan. Even if you don`t control most aspects of the franchisee`s business, if you make most of the suggestions above, you`re probably franchising (rather than licensing) your business. A franchise is an extension of an existing brand or business that wants to grow. This is an asset of your brand that is subject to the Federal Securities Act. If you`re thinking of opening a Canadian business through an established brand, you`ve probably come across the terms “license” and “franchise.” .

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