📢 Key Differences Between Franchise and License Agreements in Australia! 🇦🇺🔍
🔹 Franchise Agreement: In a franchise, a business owner (franchisor) grants the right to operate under their established brand to a third party (franchisee). The franchisor provides ongoing support, training, and supplies in exchange for fees and royalties. This model is governed by the Franchising Code of Conduct, regulated by the ACCC, ensuring transparency and fair practices.
🔹 License Agreement: With a license agreement, a licensor permits a licensee to use their intellectual property, brand, or technology. Unlike franchises, there is no ongoing support, and licensees operate more independently. While some licenses may be subject to ACCC oversight, they generally fall under broader competition and consumer laws to prevent anti-competitive behaviour.
🔒 Remember, understanding the differences and complying with ACCC regulations is vital for a successful business partnership! 🤝
💡The differences listed above are only the tip of the iceberg. It is important to speak to a professional before embarking down the license or franchising oath to avoid any issues in the future ⚠️