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FRANCHISING. When a successful business wants to expand its operation without borrowing capital to develop, one possible option is to license their IP to franchisees. It is important for legal advice to be sought before entering into a franchise agreement as proper and thorough pre-contract investigations may save all parties the hassle and high cost of litigation in the future.

Registration of franchises is compulsory in some countries. These are the common franchising ; distribution franchise, business format franchise, manufacturing franchises, service franchise. In addition to the actual product or service of the franchisor, franchise IP generally includes trade marks, logos, promotional material, a business system, marketing system, various confidential know-how processes and shop fitouts.

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