MyoFly offers it's brand as a Licensing opportunity. When an existing studio or a new group choose to use the MyoFly brand, there is no oversight, marketing plan, or royalties paid. There is an annual licensing fee. There is also a $20 charge to add clients to our Partnership. There are no other fees, resources, or operational support. This allows potential MyoFly Licensees to open and operate their small business with their local market in mind and the opportunity to save hundreds of thousands of dollars from what a traditional franchise would cost.
While franchising is perhaps the world’s most powerful growth vehicle, the entrepreneur considering growth options would be well-advised to examine all alternative channels before committing to a particular growth strategy. In order to conduct this analysis, it is perhaps easiest to start with an understanding of the federal definition of a franchise.
The FTC defines a franchise as a business relationship that has three elements:
- The use of a common trademark;
- The provision of significant operational support or the exercise of significant operating control;
- The payment of a fee of over $500 in the first six months of operation. This definition includes initial fees, royalties, advertising fees, training fees, or fees for equipment. The lone exception is for goods sold to the franchisee at a bona fide wholesale price for resale.
If you structure a business relationship with these elements, it is a franchise, regardless of the name you give it. Take away one of these elements, and you have an alternative growth strategy. (Note: No discussion of these alternatives is complete without a brief word on state laws. In some states, a business only needstwo, not three of the definitional elements to qualify as a franchise. So be sure you are speaking with a qualified attorney when drafting your legal documents.)
Business Opportunities or Licensing
If you remove the name element of the franchise definition, you will create a business opportunities license (also called a Biz Op or a license). Essentially, a Biz Op is a non-branded franchise.
But the real concern for the entrepreneur considering the Biz Op route is that they will not be able to build and realize the value of a common consumer brand. This lack of a brand identity will put the licensor at a significant disadvantage when competing with franchisors that can use advertising to promote a common brand.
This information is taken directly from