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ARTICLE · 13 OCTOBER 2011

Franchise or Licence - what would you choose?

Coleman Greig Lawyers
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Although both deal with selling of intellectual properties to third parties, franchising has a greater deal of control.

AustraliaCorporate/Commercial Law
Matthew Rowe (Previously With Coleman Greig)
Matthew Rowe (Previously With Coleman Greig)
Racha Abboud (Formerly At Coleman Greig)
Racha Abboud (Formerly At Coleman Greig)
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At Coleman Greig, we are often asked by clients "What is the difference between licensing and franchising?"

Generally speaking, licensing and franchising both deal with the selling of certain intellectual properties to third parties such as software, trademark, or a business process. Franchising however has a greater deal of control by the franchisor than a licence.

A franchise always includes a licence of the brand and operating methods, along with assistance (such as training and an Operations Manual) or support (providing advice, quality control, inspections etc).

The Franchising Code defines a franchise agreement as an agreement, either written, verbal or implied, that has the following characteristics:

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