Licensing vs Franchising: Clear your confusion with multiple examples.



The distinction among licensing and franchising is that permitting is a lawful relationship that is restricted in scope and relates just to the utilization of a brand name or innovation, while franchising includes a relationship that goes past the award of a license and incorporates a relationship of control where the basic business is required to work as per assigned frameworks and techniques.

When looking at franchising versus licensing, commonly, the inquiry emerges with regards to whether licensing is an option in contrast to franchising ? The response to that question is that, no, licensing isn’t an option in contrast to franchising. The reason is that the franchise laws broadly define a franchise as a relationship that involves (a) the license of a trademark, (b) a degree of control over business operations (i.e., such as standards and specifications) , and (c) the payment of an upfront fee. So, if your goal is the unit expansion of your business, i.e. involving a relationship where you will have some control and say over what your franchisee / licensee partners offer and sell, then the relationship is most likely a franchise.
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