What is the difference between a franchise and a license?

The difference between a franchise and a license in Maine is the way the business is structured and the associated legal rights and obligations. A franchise is a contractual agreement between two parties where one party (the franchisor) grants a license to another party (the franchisee) to make use of their business model, trademark, and other intellectual property rights. The franchisee usually pays the franchisor an initial fee to enter into the agreement, and may also have to pay ongoing fees to the franchisor in exchange for providing the franchisee with guidance and support regarding the business. A license, on the other hand, is an agreement granted by the government that gives a person or business the right to do something that would otherwise be illegal without the license. In Maine, licenses may be required for certain types of businesses, such as those involved in alcohol sales, certain types of professionals, and construction. While a license may give you the right to do something that was previously legally restricted, it does not include any of the same startup fees, training support, or ongoing fees that are included in a franchise agreement.

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What is the difference between a franchise and a license?

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