TO LICENSE OR FRANCHISE . . . THAT IS THE QUESTION.
Understanding the Differences between Licensing and Franchising . . . that is the challenge.
If it looks like a duck, walks like a duck, quacks like a duck, it’s a duck. Similarly, if a deal is structured like a franchise and/or operates like a franchise, it’s likely a “franchise,” and if so, franchise laws must be complied with, regardless of what you call the deal (i.e., even if you choose to call it a “license,” not a “franchise”). Misrepresenting the deal, misunderstanding the deal and failure to comply with necessary laws, could result in civil and criminal penalties for persons and businesses involved.