UNDERSTANDING IMPORTANT LEGAL ASPECTS OF FRANCHISING

A Franchise Agreement is a sophisticated form of Licence Agreement.  It is therefore necessary to first look briefly at what a license is and what can be licensed.  The graph below sets out the essentials of a License Agreement.  You will note that at the core, it is a contractual business relationship between a licensor and licensee.  The licensor is either the proprietor or a holder of certain intellectual property rights or technology which he allows the licensee to use in return for some sort of remuneration or other advantage...