Georgia State College Of Law
The “licensing avoids franchise rules” spin (which, not surprisingly, isn’t accepted within the legal group) also solely works till the company gets caught. The logic (not) goes one thing like this: licensing arises underneath contract law, not franchise law and therefore franchise law doesn’t apply.
Perhaps they received themselves into this mess by listening to statements discovered on the internet that franchising is dear and licensing inexpensive. Again, if something sound’s too good to be true, it normally is and this must be an enormous flashing pink mild. The most recent explosion in license law is the licensing of software on personal computer systems. Or, the proprietor of a trademark permits one other a license to use its mark as a means of settling a trademark infringement go well with. These are frequent and accepted forms of licensing.
The federal Eastern District Court dominated against the company and ordered the case ahead. It said whether or not the license was really a franchise was as much as a jury to resolve. Jurors are like most of us, and apply widespread sense to the straightforward defining components of a franchise. They usually are not swayed by semantic arguments like “licensing arises …