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If a business isn't a franchise model, what can it be?Basically, a business model either is a franchise or it isn’t. A franchise is a defined term, and the old saying “if it walks like a duck and quacks like a duck, it must be a duck” is completely applicable here. Or maybe you prefer Shakespeare’s more eloquent “A rose by any other name would smell as sweet.” Myself, I go with the duck.However you slice it, a franchisor is a franchisor, not because they chose to be but because the business elements in the relationship between the parties satisfies the legal definitions. So first, lets look at what those are:TrademarkThe first attribute of a franchise is that it gives the franchisee access to, and the right to use, its various trademarks and trade dress.Significant Control or AssistanceIt is important to note the “or” in this requirement. If a franchisor doesn’t exert control of a franchisee’s business, but does provide significant operational assistance, they can still be considered to satisfy this requirement.Required PaymentIf the franchisee is required to submit a significant payment (more than $500) then this section is satisfied. The one exception to this is selling products, intended for resale, at bona fide wholesale prices.So now we have that established. If all three elements are present, you are a franchise, for purposes of the FTC Franchise Rule.If not a franchise, then what?I am going to infer by your question that you are referring to a business that operates similar to a franchise, but somehow isn’t one. These are often called licensing opportunities or business opportunities (often called BizOpps).LicensingFirst, to be clear, a franchise IS a licensing opportunity, in that they grant some limited license to the use of their name and/or marks, but I am referring here to brands that claim to be a license instead of a franchise. In my experience, most “licensing opportunities” are just franchises. Don’t get me wrong; basic license agreements are done every day. In fact, almost all of Calvin Klein’s revenue comes from allowing other manufacturers to use their name[1]. Obviously that is not what we are contemplating here, however. In license agreement model that is similar to a franchise, what typically happened is that, some time ago, the owner decided they wanted to expand, looked at franchise law and said to themselves “that sounds like a huge pain” and decided to be a licensor instead. I have helped several of these companies get compliant with franchise law once they realized that that wasn’t their choice to make, and that they were operating an illegal franchise. For the record, doing so can require the payment of significant funds, giving people their money back, or worse. If you are thinking you can toe the line here, don’t.Having said that, there are some legitimate license programs. As an example, I worked with a huge multi-national firm (can’t name them) that produced a product that was sold in retail stores. Some stores simply carried the product line, but most were dedicated to this particular brand only, and it was the parent company’s name on the marquee. They simply didn’t charge a fee, ever. They gave the business owner full training, a license to the marks, but the way they made money was through the wholesale distribution of their product line.Business OpportunityBizOpps are a different animal all together. First, I have never came across one that was “accidentally” a franchise, although I sure they exist. Secondly, at least in the franchise space, they don’t always have the best reputation. That is mainly due to the fact that there is less legal oversight, so a unethical BizOpp company can get away with a lot more. Having said that, there are several very large brands, that provide a good value, that simply are not franchises. As an example, the Commercial Capital Training Group trains people how to be commercial loan brokers. Like most other Business Opportunities, they also offer ancillary services, like marketing, at a fee. In the bizopp case, they usually do charge an up-front fee, they usually do provide significant training, but they do not provide licensing. A graduate of one of these companies uses their own brand, although they may say they are affiliated with the training company.So, if a business is similar to, but not a franchise, there are your options. Many people will tell you that one is better than the other, but I personally believe that each has its merits, and the decision should be made based on the needs of the business. Figure out what you want to offer, and then determine if that meets the definition of a franchise, license model, or business opportunity.Hope that helps!Michael A. Peterson, author of How and Why to Franchise Your BusinessIf you find my answer helpful, informative, or even entertaining, don’t forget to upvote! If you find the subjects of franchising, small business, and entrepreneurship fascinating then consider following me. I can’t promise I’ll always be right, but I promise I will always think I am!Footnotes[1] Licensing

China and people and companies registered or resident in China legally sell literally millions of things to customers throughout the world without requiring a US or any other license to do so.Many Americans think erroneously that US patents,trademarks and Copyrights all have automatic worldwide validity . They don´t! Their regional validity, kind Coding, country coding and patent history can be seen in INPADOC status in the Espacenet: patent database with over 100 million documents.It is also a fact that no human and no computer can read and understand 100 million IP applications with up to 100 claims each !Copyright or the Right to Copy?In one sector after another, companies warn that China's swift industrial rise is being greased by brazen and increasingly sophisticated theft of intellectual property.Until recently, when China started to encourage private enterprise and began putting intellectual property laws in place all patents were owned by the government and could be shared by anybody that was willing to use them. The Chinese government actually encouraged this and that has left a deep impression on companies that the use of intellectual property is a basic right.The defensive strength of a good offense is not lost on them, either: Many Chinese patents, for example, are granted without any examination of their originality, making it easy for local companies to claim others' innovations as their own (hmm, that sounds familiar) and counter-sue instead of running away.What is Intellectual Property?Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.IP is divided into two categories: Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs.Patents:The word patent denotes a document issued by a relevantgovernment authority. In order to obtain a patent for an invention, the inventor,or the entity he works for, submits an application to the national or regional patentoffice. In the application the inventor must describe the invention in detail andcompare it with previous existing technologies in the same field in order todemonstrate its newness.Not all inventions are patentable. Laws generally require that an invention fulfills thefollowing conditions, known as the requirements or conditions of patentability:Industrial Applicability (utility). The invention must be of practical use,or capable of some kind of industrial application.Novelty. It must show some new characteristic that is not known in thebody of existing knowledge (referred to as prior art ) in its technical field.Inventive step (non-obviousness). It must show an inventive step that couldnot be deduced by a person with average knowledge of the technical field.Patentable subject matter. The invention must fall within the scope ofpatentable subject matter as defined by national law. This varies from onecountry to another. Many countries exclude from patentablility such subjectmatter as scientific theories, mathematical methods, plant or animal varieties,discoveries of natural substances, methods for medical treatment (as opposedto medical products), and any invention where prevention of its commercialexploitation is necessary to protect public order, good morals or public health.The conditions of novelty and inventive step (non-obviousness) must exist at acertain date, generally the date on which the application is filed.Priority There is an exception to this rule, covered by an applicant’s right of priority, regulated bythe Paris Convention for the Protection of Industrial Property. This exceptionrelates only to applications made in countries party to the Paris Convention. Theright of priority means that, having filed an application in one member countryof the Paris Convention, the same applicant (or his successor in title) may, withina specified time period, apply for protection for the same invention in any of theother member countries. These later applications will be regarded as if they hadbeen filed on the same day as the earliest application.For example, if an inventor first files an application for patent protection in Japan,and later a second application, with respect to the same invention, in France, itis sufficient that the conditions of non-obviousness existed at the date on whichthe Japanese application was filed. In other words, the later, French applicationretains priority over any applications relating to the same invention filed by otherapplicants between the date of the inventor’s first and the second application.This is subject to the period between the two dates not exceeding 12 months.Utility Models (e.g. Gebrauchsmusterschutz in Germany)While not as widespread as patents, utility models are also used to protect inventions in more than 30 countries. They are merely applications for national protection granted without stringent examination and thus relatively easy to invalidate. Some countries, like Hong Kong, Ireland and Slovenia, have a short-term patent that is equivalent to the utility model.The expression “utility model” is simply a name given to a title of protection for certain inventions, such as inventions in the mechanical field and are usually sought for technically less complex inventions or for inventions that have a short commercial life. The procedure for obtaining protection for a utility model is normally shorter and simpler than for obtaining a patent. Substantive and procedural requirements under the applicable laws differ to a large extent among the countries and regions that have a utility model system, but utility models usually have less stringent requirements than patents. While the “novelty” requirement must always be met, that of “inventive step” or “non-obviousness” may be much less or even absent altogether. In practice, protection for utility models is often sought as a cheap solution because the fees required for obtaining and maintaining the right are generallylower than those for patents.The maximum term of protection provided by law for a utility model is generally shorter (usually only between 7 and 10 years) than the average 20 years for patentsIndustrial DesignsAn industrial design, in general terms, is the ornamental or aesthetic aspect ofa useful article. This aspect may depend on the shape, pattern or color of thearticle. The design must have visual appeal and perform its intended functionefficiently. Moreover, it must be able to be reproduced by industrial means; thisis the essential purpose of the design, and is why the design is called industrial.In a legal sense, industrial design refers to the right granted in many countries,pursuant to a registration system, to protect the original, ornamental and nonfunctionalfeatures of a product that result from design activity.Trade marksLegally speaking, a trade mark is a sign which serves to distinguish the goods and services of one organisation from those of another.Trade marks are words (in German "Wortmarke"),brands, logos, devices or other distinctive features which can be represented graphically. They can also consist, for example,of distinctive shapes of the goods (in German "Bildmarke") such as the famous Coca Cola bottle, their packaging, sounds and smells.Industrial design and trademark protection is neither applicable, permissible or valid for product and brand designs and appearances, which are solely dictated by technical function (e.g. the shape of air bag valves). These are subject to patent legislation.1. EU Community trade marks (CTM´s)are valid in all 27 EU countries and protect distinctive signs. They are granted directly by the OHIM, Avenida de Europa, 4E-03008 Alicante, Spain, [email protected] Tel. +34 96 513 9100 in accordance with the conditions specified in the CTM Regulations. CTM´s are valid for 10 years and can be renewed indefinitely for periods of ten years.2. International trade marks designating the European Union (EU):are likewise an exclusive right but administered by the International Bureau of the World Intellectual Property Organization (WIPO) in Geneva according to the Madrid Protocol. WIPO processes the application and then sends it to EUIPO for examination according to the conditions specified in the CTM Regulations. This has the same effect as applying directly to the EUIPO for a Community trade mark.Photos of trademarksUnlike copyright law, trademark law as such does not restrict the use of a trademark in a photograph.What it does forbid is the use of a trademark in a way that can cause confusion regarding the affiliation of the trademark owner to the image.If consumers are likely to mistakenly believe that the trademark owner sponsored a photograph, then there may be trademark infringement.CopyrightProtects works of art including written, theatrical, musical and artistic works as well as film, book layouts, sound recordings, and broadcasts. Copyright is an automatic right, which means you don't have to apply for it.Copyright is valid in nearly all countries by bilateral treaty or established international conventions such as the Berne Convention or WIPO Copyright Treaty. for the whole life of the creator plus fifty to a hundred years from the creator's death.However The advent and increasing proliferation of the internet has made international control of copyright piracy and avoidance of plagiarism extremely difficult if not impossible.

I'll try to answer your question, like a Mexican Native born, raised and educated in the Mountain's City located in the Northeast of México.In New Mexico, the enchanted land,The Sandia National Laboratories is an exceptional partner to business.The University of New Mexico Center for High Tech Materials (CHTM) is dedicated to excellence in photonics, microelectronics and nanoscale materials and devices and their applications.Thanks to the Air Force Research Laboratory, home of the Air Force’s Directed Energy Directorate, New Mexico is THE HUB of directed energy and photonics research. With companies like OptiPulse, SolAero, and Skorpios, New Mexico leads in technology development in lasers systems, high power electromagnetics weapons modeling and simulation, space solar cells, and directed energy and electro-optics.InnovationNew Mexico has a rich environment for technology commercialization via 3 national laboratories, 3 renowned research universities, and many nonprofit research institutions. Most of these institutions offer specialized services and facilities to entrepreneurs and businesses.LaboratoriesLos Alamos National Laboratory (LANL) was established in 1943 as site Y of the Manhattan Project for the single purpose of building an atomic bomb. The lab’s mission continues to be national security with a focus on nuclear proliferation, border security, energy and infrastructure security, and countermeasures to nuclear and biological terrorist threats. In addition, the lab works to assure the safety, security, and reliability of the nation’s nuclear deterrent.LANL’s fundamental science activities include: high-energy and applied physics and theory, high-performance computing, dynamic and energetic materials science, superconductivity, quantum information, advanced materials, bioinformatics, theoretical and computational biology, chemistry, earth and environmental science, alternative energy systems, and engineering sciences and applications.LANL success stories include:NASA selected SuperCam instrument, embedded with Laser-Induced Breakdown Spectroscopy (LIBS) technology originally developed at LANL, for the Mars 2020 mission.LANL scientists successfully test launched a new rocket design that includes high-energy fuel and a new motor design that delivers a high level of performance as well as safety.R&D Magazine has awarded over 130 awards to LANL-developed technology since 1978. In 2014 Safire, a multiphase flow meter, and Acoustic Wavenumber Spectroscopy (AWS), which generates images of hidden structural properties and/or defects, were among the winners.Partnering or licensing a technology is offered at LANL through the Richard P. Feynman Center for Innovation.Sandia National Laboratories (SNL) has also had a presence in New Mexico since the 1940’s. The lab collaborates with other government agencies, industry, and academic institutions on its fourfold mission which is composed of nuclear weapons, defense systems and assessments, energy and climate, international, homeland, and nuclear security. Sandia’s core capabilities reside in 4 broad areas: systems engineering and integration, high-performance computing and modeling and simulation, extreme-environment testing at unique facilities, and nanotechnologies and microsystems.Research conducted at SNL is founded in 7 areas: bioscience, computing and information science, engineering science, geoscience, materials science, nanodevices and microsystems, and radiation effects and high energy density science. Within each area, Sandia works with academic and business leaders to support essential activities that translate into invention, innovation, entrepreneurship, economic opportunity, and public benefit. Toward this end, SNL also operates 22 Technology Deployment Centers.SNL achievements include:The Federal Laboratory Consortium’s (FLC) 2015 Award for Excellence in Technology Transfer was awarded to Sandia-developed technology that detects bacteria that causes anthrax, which requires no power, refrigerated storage, or lab equipment and makes the process safer, quicker, and less expensive. New Mexico-based business, Aquila, that specializes in the design and manufacture of technologies and services for nuclear security and international safeguards, licensed the technology and is bringing it to market.Sandia researchers developed a single process to control crystal orientation, crystal size, and alloy uniformity resulting in more efficient performance in thermoelectric nanowires.R&D Magazine has awarded more than 100 awards to Sandia researchers and their collaborators since 1976. In 2013, SNL was awarded 3 awards for Membrane Projection Lithography, Mantevo Suite 1.0 (an integrated collection of small software programs that models the performance of full-scale applications, but requires a fraction of the code), and Solar Glare Hazard Analysis Tool (SGHAT).The Air Force Research Laboratory (AFRL) at Kirtland Air Force Base in Albuquerque operates 2 of the Air Force’s 7 technical directorates: Directed Energy and Space Vehicles. The Directed Energy Directorate is the Air Force's center of expertise for directed energy and optical technologies, with a focus in 4 core technical competencies: laser systems, high power electromagnetics, weapons modeling and simulation, and directed energy and electro-optics for space superiority. The Space Vehicles Directorate is comprised of 3 distinct divisions: battlespace environment, spacecraft technology, and integrated experiments and evaluation.AFRL has been recognized for many achievements including: scientist Dr. Candace Lynch receiving the Harold Brown Award for Pioneering Laser Materials Research, and Dr. Mark Draper, senior research engineering psychologist, received the Harry G. Armstrong Scientific Excellence Award for his scientific innovations that are revolutionizing Remotely Piloted Aircraft supervisory control interfaces.UniversitiesThe University of New Mexico (UNM) conducts research in many diverse fields. Research Centers and Institutes at the main and branch campuses include the Health Sciences Center, ARTS Lab, Institute for Astrophysics, New Mexico Center for Particle Physics, Center for High Technology Materials, Center for Micro-Engineered Materials, and the Center for Advanced Research Computing. Intellectual property and technology transfer is facilitated by STC.UNM.New Mexico State University (NMSU) has demonstrated research capacity and contributions in 9 areas: Animal and Range Science, Biochemistry, Molecular Biology and Genetics, Computer Science and Computer and Electrical Engineering, Energy and Biofuels, Environment and Ecology, Medical and Health Sciences, Plant and Soil Sciences, and Space and Water. Intellectual property and technology transfer is facilitated by the Office of Intellectual Property and Technology Office at Arrowhead Center.New Mexico Tech (NMT), formerly the New Mexico Institute of Mining and Technology, is also a nationally-recognized research university. Research organizations at NMT include: Energetic Materials Research and Testing Center; Institute for Complex Additive Systems Analysis; Institute for Engineering Research and Applications, Magdalena Ridge Observatory, MicroElectronics Testing and Technology Obsolescence Program, Optical Surface Technologies, Petroleum Recovery Research Center, and the Research and Support Center for Applied Mathematical Modeling.Technology Advancement ResourcesArrowhead Center at NMSU brings researchers and entrepreneurs together to solve market problems and maximize market opportunities. This is done by commercializing the technology discovered by researchers and helping entrepreneurs navigate the market to monetize these new solutions. Industry sectors and government agencies are also served through the Arrowhead Research and Business Park and Economic and Policy Studies. Other services provided by the Arrowhead Center include: enterprise research, and access funding through grants.Arrowhead Accelerator Sprints assists startups in building a strong team and giving them access to tools and resources necessary for transforming ideas into businesses. Workshops, networking events, mentoring, assistance with capital sourcing and customer acquisition, and work-ready space are also available to incubator residents and friends. ATI specializes in startups emerging in the following industries: power, water, technology, Internet technology, and agri-tech. Technology Commercialization Associates are also available for technology transfer services through the IP Office.The Center for Integrated Technologies (CINT) is jointly operated by Los Alamos and Sandia National Laboratories as a national user facility devoted to establishing the scientific principles that govern the design, performance, and integration of nanoscale materials. The Core Facility is located at Sandia and the Gateway Facility is located at Los Alamos. CINT focuses on 4 scientific areas: nanophotonics and optical nanomaterials; nanoscale electronics and mechanics; soft, biological, and composite nanomaterials; and theory and simulation of nanoscale phenomena.The Center for Leadership in Technology Commercialization (CLTC) at NMT is located within the Department of Management and was created to spur entrepreneurial endeavors out of the university. CLTC offers students the opportunity to gain practical technology commercialization experience, and serves as a catalyst for quick development of licensing and intellectual property sharing opportunities. Examples of recent projects by students include: anti-bacterial agents, network monitoring, and novel refrigeration.The New Mexico Consortium (NMC) was established to strengthen research that is in national interest and increase the role of Los Alamos National Laboratory (LANL) in science, education, and regional economic development. A nonprofit formed by the 3 New Mexico research universities, NMC promotes collaboration among academia, industry, and research. NMC’s science initiatives include: plant biology, biomedical technology and engineering, advanced computing, and modeling and analysis. NMC takes pride in the following core capabilities: PRObE, a supercomputing facility (funded by the National Science Foundation); the ability to perform cross-disciplinary research capable of fully characterizing cell function; and a biological laboratory equipped with wet laboratory facilities, specialized laboratories, a Photobioreactor Matrix, and a 4,000 square foot research greenhouse.The New Mexico Manufacturing Extension Partnership (NM MEP), is an assistance center that works toward increasing small and mid-sized companies’ competitiveness. MEP’s expertise lies in many areas including: results-driven methodologies, best practices, and innovative technologies designed to increase profitability.The New Mexico Small Business Assistance (NMSBA) Program offers technical assistance to New Mexico small businesses. Businesses with a technical challenge that require special expertise can seek assistance from scientists or engineers at Los Alamos and Sandia National Laboratories. Such projects include testing, design consultation, and access to special equipment or facilities.The Small Business Innovation Research (SBIR) program urges small businesses to participate in Federal Research/Research and Development (R/R&D) with the objective of commercialization. The program is competitive and requires an application, which can be awarded a monetary prize for the purpose of conducting the research outlined in the application.STC.UNM is the technology transfer office created by and for UNM. It is centrally located in proximity to research and development and laboratory facilities and other technology based companies, many of which are the result of STC. STC also collaborates with researchers at Sandia National Laboratories and Los Alamos National Laboratory.Activities of the office include: protecting technologies developed at UNM and transferring them to the marketplace (either through the starting of new companies or transferring technologies to established companies); connecting the business community to UNM for access to expertise, facilities, and research activities; and facilitating UNM's role as a contributor to New Mexico's economic development.