What is the difference between a franchise and a license?

The difference between a franchise and a license in North Carolina is that a franchise is a form of ongoing business relationship between the franchisor and the franchisee. A franchise typically involves the franchisor granting the franchisee the right to produce and distribute the franchisor’s products, use the franchisor’s trademark and/or name, and receive ongoing support from the franchisor. North Carolina franchise law requires that franchisors disclose certain information to the franchisee prior to entering into a franchise agreement, and may also impose certain restrictions on franchisors. A license, on the other hand, is a permission granted by the licensor to the licensee to use certain property or assets owned by the licensor. These could include patents, trademarks, copyrights, brand names, logos, and other intellectual property rights. The licensee is then granted limited exclusive rights to use the licensor’s property for a specified period of time. Licensing agreements involve a one-time transaction with no ongoing relationship between the licensor and licensee. North Carolina license law does not require disclosure of certain information prior to entering into a licensing agreement.

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