If there is any type of agreement that should not be grabbed online and used it’s a licensing agreement.
A while back I came across someone who had used an agreement that was appropriate to another country, and in that agreement he had effectively given away all his rights to exploit his intellectual property because the terms of the licence he had granted said that the other party would have “sole and exclusive” rights to use the IP in question. None of the traditional provisions that would safeguard the licensor that one would expect such a licence to include were present either.
In this post, which I’ll discuss shortly, I’ve explained the variety of different transactions that a licence can cover. Therefore, it is particularly inappropriate to find a licence agreement that was drafted for a different arrangement and purpose and use it to license your IP. Get legal help for any licence agreement.
To explain why the post I’ve just linked you to bears a date 2014, it’s necessary to explain that I recently came across a piece by Neil Patel which ultimately led me to a content marketing site: Animalz. To my surprise, I discovered that content decays. I had always assumed that once you put good content online it stays relevant forever unless by its very nature that content dates. So, I ended up at this free resource from Animalz and entered my details.
Licensing and Franchising Blog
They sent me a report after looking at my Google Analytics and analysing traffic to the Azrights site over the last 12 months. This identified 9 articles that have lost 3171 views combined, which means we are missing out on a lot of traffic. So I added the posts they highlighted to my editorial calendar in order to refresh them.
I already knew that a huge portion of the traffic to the Azrights site came from this article Licensing And Franchising, What Is The Difference And Does It Matter? which I had written in 2014 and which ranked on Google. I’d noticed that my article had been knocked off its top spot by an article that was misleading in its information so I was keen to update the blog and set the record straight on this point of confusion that the other article was perpetuating.
So, I have completely updated that 2014 blog in order to more fully explain the difference between licensing and franchising, and in particular to explain the difference between UK and US franchising laws which mean that licensing business formats is possible in the UK but is subject to hefty fine in the USA.
Working Towards Franchising
At Azrights we recommend working towards franchising by testing licensing first. That’s because most of the preparatory actions you need to take to get your business licensing-ready, are actually beneficial in running a better business. So, you would not be wasting time and focus if you take the actions that we recommend to license your business format.
A good starting point if you’re considering licensing or franchising is to consider your brand and IP strategy.
Once you have you’ve got your business ready, found one or two licensees, and tested the concept, you could go all the way and franchise your business if you still think that is the right step to take.
Visit the 2014 blog which, despite bearing the date it was originally written, has in fact been completely updated and refreshed in July 2020, to get the full details for how to do this.
And whatever type of licensing you’re considering, be it brand, or merchandising or simply to license your know-how, bear in mind that the laws in the UK, Australia, USA and other countries differ. That means any type of licensing agreement that you use must be appropriate to the law of the country in which you’re located. Even though you may find plenty of licensing document templates online, do not just download one and use it.
Are you thinking about how to scale your business? Would you like to consider your brand strategy, then attend our upcoming webinar which is provided as a gift – and nothing is being sold on the webinar. It is totally free content.