Trademark Licensors Beware: Is Your License an Inadvertent Franchise?
| An article by Rochelle Spandorf of DWT's Distribution Counseling Group |
| 08.17.10 |
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.
Click here to read the article.
