Many business owners develop prototypes of an operating businesses that they want to license out to others at a fee. It is a good way of enterprising a system uniquely developed whether that system or product is a restaurant style, a retail differential style or even more innovative businesses like creative arts and intellectual property developments. Generally, the first licensing style that comes to mind is franchising. However the requirements for franchising can sometimes be onerous for small operations.
In Ontario, the Arthur Wishart Act (Franchise Disclosure) and its evolved regulations govern the disclosure requirements in franchising. Brand licensing might be more affordable and appropriate for certain operations. In order to determine the best growth, expansion, or licensing options for your business it is always prudent to seek legal counsel. Counsel can work with you to establish whether you are indeed ready for franchising or if other licensing options might work better for your brand.