A trademark license may seem straightforward. It is an arrangement that gives a licensee the right to use the licensor’s mark in some manner for some amount of time, with the licensor exercising quality control over the goods offered and services rendered under the mark. Since a license is like any other contract, the licensor can add any number of conditions to the agreement, right? Not necessarily. This could inadvertently create a franchise and subject you to civil and criminal penalties.

What is a franchise?