What is the primary difference between a franchise and a licensed dealership?

By Jeff Elgin •

Opinions expressed by Entrepreneur contributors are their own.

If we sell the use of our logo and marketing materials, and offer business/marketing coaching to independent agents in our service industry, does that make us a franchisor? There is so much conflicting information about what constitutes a licensed dealership, franchise, and business opportunity. Could you offer some clairification of the differences? I realize the rules vary by state. We want to offer licensed dealerships. Thanks!
This is a very important question because it affects what laws and regulations will apply to your business endeavor.  The only sure way to know the answer for your specific situation is to consult with an attorney that specializes in franchise and business opportunity laws.  There are many of these that you can access through the International Franchise Association web site at www.franchise.org and you'll find that most will grant you an initial consultation at no cost to get your basic questions answered.
Wavy Line

Jeff Elgin has almost 20 years of experience franchising, both as a franchisee and a senior franchise company executive. He's currently the CEO of FranChoice Inc., a company that provides free consulting to consumers looking for a franchise that best meets their needs.

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