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A Georgia licensee signs a franchise agreement in 2026 to let a local firm operate under its brand. Does sharing the brand remove the franchise location separate-license requirement?

Correct Answer

B) The franchise location has to obtain a separate license of its own

A location will not be deemed a branch and will be required to have its own license where it is a franchise arrangement, which is the first of the situations the rule lists alongside the net branch. Other choices: calling it a branch is what the rule refuses; sharing a brand does not license anyone; and approving a manager does not convert a franchise into a branch. Source: Ga. Comp. R. & Regs. 80-11-1-.03(5)(a)

Answer Options
A
The franchise location is a branch of the licensee that franchised it
B
The franchise location has to obtain a separate license of its own
C
The franchise location is a branch once a manager is approved for it
D
The franchise location needs no license while the brand is shared

Why This Is the Correct Answer

A location will not be deemed a branch and will be required to have its own license where it is a franchise arrangement, which is the first of the situations the rule lists alongside the net branch. Other choices: calling it a branch is what the rule refuses; sharing a brand does not license anyone; and approving a manager does not convert a franchise into a branch. Source: Ga. Comp. R. & Regs. 80-11-1-.03(5)(a)

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