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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37868
Experience:  Retired (mostly)
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I currently own a business with License agreements with owners

Resolved Question:

I currently own a business with License agreements with owners in 12 states. We have signed agreements with royalties on sales, marketing, reporting, and non compete requirements. I am considering franchising and want to know if there are any signigicant advantages to a franchise versus a license agreement.
Submitted: 7 years ago.
Category: Business Law
Expert:  socrateaser replied 7 years ago.

Since a franchise agreement is nothing more than a comprehensive licensing agreement covering all aspects of the franchisee's business operations, except for the right to direct control over the means and method by which the franchisee conducts its business, I think that the answer is that you're already franchising your business.


This is the legal doctrine of "substance over form."


Hope this helps.


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