diff --git a/.gitignore b/.gitignore
index fe94ac8c9..fae1c7d3d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,4 +1,7 @@
-# may contain OAuth secrets, do not commit
+# ignore the license file
+license.xml
+
+# may contain OAuth secrets, do not commit
 .sitecore/user.json
 
 # NuGet cache for Sitecore CLI
diff --git a/README.md b/README.md
index 6e1b9964b..a54fd3732 100644
--- a/README.md
+++ b/README.md
@@ -2,26 +2,34 @@
 
 ## QUICK START
 
-1. In an ADMIN terminal:
+1. Copy your license file to the license folder
+
+2. In an ADMIN terminal:
 
     ```ps1
-    .\init.ps1 -InitEnv -LicenseXmlPath "C:\path\to\license.xml" -AdminPassword "DesiredAdminPassword"
+    .\init.ps1 -InitEnv -AdminPassword "DesiredAdminPassword"
     ```
 
-2. Restart your terminal and run:
+3. Restart your terminal and run:
 
     ```ps1
     .\up.ps1
     ```
 
-3. Follow the instructions to [deploy to XM Cloud](#deploy-to-xmcloud)
+4. Follow the instructions to [deploy to XM Cloud](#deploy-to-xmcloud)
+
+5. Create Edge token and [query from edge](#query-edge)
+
+### License File
 
-4. Create Edge token and [query from edge](#query-edge)
+If you store your license file in a central location, you can pass a LicenseXmlPath paramter to the init command to use that location. 
+
+```ps1
+.\init.ps1 -InitEnv -LicenseXmlPath "C:\path\to\license.xml" -AdminPassword "DesiredAdminPassword"
+```
 
 *** 
 
 ## About this Solution
 This solution is designed to help developers learn and get started quickly
 with XMCLoud + SXA.
-
-
diff --git a/init.ps1 b/init.ps1
index 37e2b03f9..ea845a69f 100644
--- a/init.ps1
+++ b/init.ps1
@@ -4,10 +4,10 @@ Param (
         ParameterSetName = "env-init")]
     [switch]$InitEnv,
 
-    [Parameter(Mandatory = $true,
+    [Parameter(Mandatory = $false,
         HelpMessage = "The path to a valid Sitecore license.xml file.",
         ParameterSetName = "env-init")]
-    [string]$LicenseXmlPath,
+    [string]$LicenseXmlPath =".\license\license.xml",
 
     # We do not need to use [SecureString] here since the value will be stored unencrypted in .env,
     # and used only for transient local development environments.
diff --git a/license/.gitkeep b/license/.gitkeep
new file mode 100644
index 000000000..e69de29bb