The Franchising Code defines a franchise agreement as an agreement (written, verbal or implied) that has the following characteristics:

• one party (the franchisor) grants another party (the franchisee) the right to carry on the business of offering, supplying or distributing goods or services under a specific system or marketing plan
• the franchise business will be substantially or materially associated with a trademark, advertising or a commercial symbol owned, used, licensed or specified by the franchisor
• the franchisee is required to pay, or agree to pay, a fee to the franchisor before starting or continuing the business.

A motor vehicle dealership agreement (including a motor boat dealership agreement) is taken to be a franchise agreement under the Franchising Code even if the above definition has not been met.

Simply because a business is called a licence or distributorship does not mean it cannot be a franchise. If a licence or distributorship meets the above definition, it is most likely a franchise and must comply with the code.