Licence and Distribution Agreements

Under the terms of a licence or distribution agreement a licensee is generally granted the right to use your name or trademark or distribute your product within a defined territory.

We will assist you to develop a customised, plain English licence  or distribution agreement which is user friendly and reflects your business needs and strategy while protecting your business interests.

Before preparing any licence agreements we will assess your business model to ensure that your business model is not caught by the Franchising Code of Conduct (the Code).

The Code uses 4 criteria to decide whether a business is a franchise.

1 – Is there a system or marketing plan which must be followed?

It is likely that there is a system or marketing plan if some or all of the following apply

  • there are suggestions for retail prices to be charged for products or services;
  • there are products that must be produced;
  • there are recipes that must be followed;
  • there are specific methods for providing services;
  • there are detailed advertising programme;
  • there are restrictions on the sale of products.

2 – Is there a brand image or trademark associated with the goods or services to be provided?

One of the main rights that a franchisee is given by the franchisor is the right to use the Franchisor’s brand, name and logo.

3- Is there an agreement between the parties?

An agreement between the parties does not need to be in writing. The agreement can be verbal or it can be implied.

4 – Have any fees been paid?

Fees include royalty payments, up front licence fees, advertising payments, commissions and training fees.

Contact us to arrange a preliminary meeting so we can discuss your business model and the agreement you require.

 

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