Minneapolis franchisee lawyer Ron Gardner explains the difference between a franchisee and a licensee.
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Oftentimes I get called by people who say well, I have a license agreement I don’t have a franchise agreement and I raise my eyebrow at least in my office, they can’t see it I’m on the phone, and I think I doubt that. There is very, very little difference frequently particularly in a business relationship between a franchisee and a licensee. True licensees are you and I when we click on our app, our iTunes and say yes, we agree to that license because we’re doing nothing other than using the software that someone has licensed us to use. When someone is in the business of reselling things for someone else or reusing someone else’s technology in a way that there’s a trade name associated with that technology and that there is an ongoing fee for the continued use of that technology. Most frequently a licensee in those situations will be deemed to be a franchisee and that can be really helpful if the licensor wants to take action against the licensee down the road that the licensee objects to.