© 2019 by Dharsan Seiter Law Corporation. All Rights Reserved.

LICENSING & FRANCHISING ​

What is a license?

A licensing agreement is a legal contract between two parties, known as the licensor and the licensee. In most licensing agreements, the licensor grants the licensee the right to produce and sell products/services, to apply for a brand name or trademark, or use patented technology owned by the licensor. In exchange, the licensee usually adheres to a series of conditions regarding the use of the licensor's property and agrees to make payments known as royalties.

Licensing agreements cover a wide range of well-known situations. For example, a small manufacturer might license a proprietary production technology from a larger firm to gain a competitive edge rather than expending their own time and resources to develop its own technology. 

How can we help you?

Our team of professionals can assist you in: 

 

  • Drafting licensing agreements. 

  • Advice on licensing disputes.

  • Review of licensing contracts.

What is a franchise?

Franchising is a type of business model, where a business relationship between a franchisor, the owner and grantor of rights and franchisee, a receiver of said rights are created. A product or service is marketed and distributed based on the rights granted by the franchisor to run a business using the owner's trademark or trade name based in a specific way for a specific amount of time.  


The International Franchise Association has defined franchising as a "continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organising training, merchandising and management in return for a consideration from the franchisee".

"Franchising" is also used to describe a number of business models, the most commonly identified of which is "business format franchising". There are other models which are also dependent on franchise relationships and include; 

  1. Manufacturer-Retailer: Where the franchisee sells the franchisor's product directly to the public. 

  2. Manufacturer-Wholesaler: Where the franchisee is under a license to manufacture and distribute the franchisor's product 

  3. Wholesaler-Retailer: Where the franchisee purchases products for retail sale from a franchisor wholesaler (frequently a cooperative of the franchisee retailers who have formed a wholesaling company through which they are contractually obliged to purchase. eg. Hardware and automotive product stores).

  4. Retailer-Retailer: Where the franchisor markets a service, or a product, under a common name and standardised system, through a network of franchisees. 

 

How can we help you?

Our team of professionals can assist you in: 

 

  • Drafting franchising agreement.

  • Reviewing and advising on franchising rules and regulations in different countries.

  • Disclosure documentation.

  • Advice on franchising disputes.

  • White Facebook Icon
  • White LinkedIn Icon