Is Your Cannabis Business Really a Franchise? FTC May Say Yes

As can be imagined, distinguishing a true licensing deal from a bona fide franchising arrangement can be challenging. However, the difference between these two structures is in fact immensely significant and implicates various Federal and State governing agencies. Without proper guidance, a marijuana business owner who thinks he is operating as a licensee may in fact be working as a franchisee. This scenario, of accidental but in-fact franchising, is typically characterized as “unintended franchising.” More precisely, the (believed-to-be) licensee allows his company to do far more than fly the banner of the licensor/franchisor – instead, this proxy company increasingly begins to operate under the guidance, direction, and control of the master company.

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About The Weed Blog

Since its inception, TWB has been based in activism and the mobilization and movements for marijuana policy reform happening around the country. It was created for one purpose: to facilitate a constructive conversation about marijuana in America. This includes both medical and recreational marijuana policy, as well as the marijuana industry and culture.