How to license business vs franchise?

[jbella80]

What is the name of your state (only U.S. law)? Florida

Hi-

I have owned a service based business for over 7 years, and most recently have had someone inquire about opening up one near them. While I would love to, the challenges of owning a business from afar is difficult. She said she would be interested in possibly owning one. I could franchise it, but of course that is expensive and pricey. I've read that another option is to license it. Could someone explain what that may entail?

Thank you!

 

[Zigner]

What is the name of your state (only U.S. law)? Florida

Hi-

I have owned a service based business for over 7 years, and most recently have had someone inquire about opening up one near them. While I would love to, the challenges of owning a business from afar is difficult. She said she would be interested in possibly owning one. I could franchise it, but of course that is expensive and pricey. I've read that another option is to license it. Could someone explain what that may entail?

Thank you!

Yours is not a legal question. I would suggest that you seek out a business planning professional and/or sit down with a CPA to discuss this matter. Best of luck to you!

 

[FlyingRon]

I think you are misled. Licensing and franchises pretty much are the same scope. Essentially, if you have some property (trademarks, advertising, etc...) that you want to allow another to use you make an agreement for them to do so in exchange for providing something to you (money usually). What do you have to sell?