What’s an Accidental Franchise, and Could I Be One?

What happens when you have a successful business and someone approaches you about opening one in his or her city? You may think that sounds like a great idea, but the thought of franchising seems so daunting that you decide to enter into a license agreement instead. It’s not a franchise if it’s called a license agreement, right?

WRONG. Your simple license agreement may have turned you into a franchisor, requiring you to comply with the Federal Trade Commission’s Rule on Franchising (the FTC Rule) as well as certain state laws (depending on your location and that of the licensee/franchisee).

Before licensing your business to others, learn what constitutes a franchise and how to avoid falling into the accidental franchise trap. Click Here to learn more about the Accidental Franchise presented by Fox Rothchild, LLP National Co-Chair of Franchising and Distribution Group; attention: Eleanor Vaida Gerhards (215) 918-3642.