One of the benefits of owning a trademark is enjoying the ability to license the mark – meaning, you can agree to let someone else use the trademark in exchange for a fee or some other type of compensation. In theory, trademark licensing should be straightforward. However, the “franchise trap” or the “accidental franchise” makes it more complicated than it may initially seem. Franchises are highly regulated at both the state and federal level. For example, franchisors are required to make substantial disclosures of financial information, which must be audited. In California, as in many other states, the franchise must…
