Franchising And Trademarks: Where, Why And How?

For many trademark practitioners, franchise laws are an inconvenience. The knee-jerk advice to clients is to avoid franchising. This is not always bad advice, as compliance can be costly and cumbersome and franchise laws are often complex, intentionally broad and carry significant penalties. However, in many jurisdictions it is challenging, if not impossible, to allow a third party to replicate your business without becoming a franchisor, so it is helpful for trademark attorneys to understand when a trademark licence may cross the line.