Franchises are highly regulated arrangements that require substantial disclosure documentation and other compliance efforts. Licensing and distribution arrangements are lower-cost, less-regulated alternatives. Misclassifying a business relationship as a license or distribution arrangement is a common and costly mistake when it is a franchise.

A poorly drafted license or distribution agreement can result in the accidental creation of a franchise subject to complicated and demanding laws. Significant consequences, including damages and rescission of franchise agreements as well as fines, penalties, freezing of assets, restitution, and personal liability of a company's management, can flow from noncompliance with franchise laws. It is a felony to violate franchise sales laws.

Business counsel can help clients avoid missteps by understanding the thin line separating a franchise from a non-franchise license or distribution arrangement and advising clients about structuring strategies to help avoid creating an inadvertent franchise.

Listen as the panelists provide perspectives on drafting licenses and distribution agreements to avoid creating an accidental franchise. The panel will also discuss best practices for complying with federal and state franchise and business opportunity laws once an inadvertent franchise is established.

* Please note there is a cost to attend.