License Agreement Or Franchise Agreement

Question 2
Is it better to enter into a License Agreement or Franchise Agreement?

Answer 2
Based on the business nature, we advise the best option would be create a license agreement as opposed to creating a franchise agreement. This is because a franchise agreement is more appropriate if you intend the franchisee to replicate the exact business model you have created, i.e. you help them to set up an identical branch of your business, which everyone else sees as part of your business.

On the other hand trade mark licensing, allows the licensee to operate a business, which is not seen as part of your business but rather as a co-operative venture, and the licensee brings to the business either skills or something else, which you lack other than, simply finance.

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