Trademark Licensors Beware: Is Your License an Inadvertent Franchise?
Unhappy dealers, distributors, licensees, sales agents, and other independent contractors (regardless of their title) continue to sue manufacturers, suppliers, licensors, and other strategic partners claiming the commercial arrangement between the parties is an illegal franchise.
In “Structuring Licenses to Avoid the Inadvertent Franchise,” written by Davis Wright Tremaine franchise attorney Rochelle Spandorf for the American Bar Association’s Landslide magazine, Rochelle explains the significance of being a franchisor and how to structure distribution and licensing programs to avoid accidental franchises.
Rochelle discusses, how, among other things, selling an inadvertent franchise can result in personal liability for a company's owners and key management. Every company that distributes goods or services through independent dealers, distributors, licensees, or sales agents should carefully consider these risks.
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About the Distribution Counseling Group at DWT: We help a wide variety of businesses get their products and services to market effectively and efficiently. From sourcing to production to marketing to distribution, we have the experience to help.
Rochelle Spandorf has more than 30 years of experience representing franchisors, manufacturers, licensors, and suppliers in their domestic and international expansion and strategic development. She works with clients in diverse industries, from startup concepts to mature public companies, helping them structure domestic and international franchise, licensing, dealer, and distribution programs.