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Legal Issues
How do I set up a cost or royalty fee for running a replica of my website in another country?
I have a US brand product. A client wants to sell the same product in the UK and create a website that matches my US website. Is this franchising and licensing? If so, can I charge money or royalty fee for the use of my art and website code?

Asked by Scottyrocks
Posted: Thursday, January 24, 2008  |  Found in Legal Issues


More answers by Nina Kaufman
Answer by Nina Kaufman
You can certainly set up a royalty or commission sales arrangement with anyone wanting to sell your products. It's not clear from your brief description, though, whether using an exact replica website is an absolute condition of selling your product (e.g., is part of the business model the client is buying into) or whether it's just a matter of convenience for the client. That, and other questions, should be reviewed with an attorney specializing in franchise law to see whether you have crossed the line between a license and a franchise. The reason for this is that you cannot legally establish a franchise without it being registered with the state franchising authorities and possibly the Federal Trade Commission. In addition, different states have slightly different criteria for when you cross the line from one to another.
Nina Kaufman has a New York City-based boutique law practice and is president of Wise Counsel Press LLC, which produces legal information products for entrepreneurs. She writes the Making It Legal blog and the Business Law Advisor column for WomenEntrepreneur.com.

Note: This response is for your general information only. Be sure to consult with an attorney regarding your particular situation to get the advice you need.



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