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- License agreement or franchise agreement, whats the difference? Stick around and Ill tell you. Hi everyone, its Simon here from The Contract Company, contracts, thats what we do all day every day and sometimes overnight, lucky us. Anyway you wanna find out the difference between a license agreement and a franchise agreement, no problem. A license agreement generally only gives a person the right to use a specific piece of IP, usually a trademark, a patent or copyrighted material. And for that right to use that IP, you then pay a license fee and thats usually all thats set out in a license agreement. However, a franchise agreement allows a person the right to use a particular brand, lets say the Golden Arches but the franchise agreement will not only allow a person to use the brand of the Golden Arches but it will set out a whole process and system that the franchisee also has to abide by for instance the agreement will set out the fact that a store needs to be fitted out the