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 license.
A franchise always includes a license 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: