What is the difference between Franchising and Licensing? - ProProfs Discuss
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What is the difference between Franchising and Licensing?

Asked by H. Reyes, Last updated: Aug 30, 2019

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3 Answers

E. Austin

E. Austin

Answered on Aug 30, 2019

Franchising is a technique to enhance your business once it has been proven and has its value in the market. When you agree to give your franchise to others, that means you are safeguarding that they have the essential skills to operate branches of your business. An example of franchising business is McDonald's, which has grown its business through franchising.

Franchising is a technique to enhance your business once it has been proven and has its value in
Licensing is a settlement between two parties, where one party agrees to allow other parties to use their intellectual assets. Licensing is also the base of franchising. Licensing is governed by contract law, while franchising is regulated by securities law. Registration of licensing is not required. Registration of franchising is needed.

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C. Kenway

C. KenwayContent Writer, Jacksonville
Content Writer, Jacksonville

Answered on Aug 13, 2019

There are some brands that are able to grow because of franchising. This usually happens when a brand is popular and other people would like to offer the brand to a completely different place through a franchise. The products and services of the company will become available through the use of a dealer. Big companies allow their products and services to become available through franchising.

There are some brands that are able to grow because of franchising. This usually happens when a
Licensing is the process wherein there is a business arrangement between two companies will become available. Usually, one company will sell the other company’s products or services in exchange for a commission. There are some companies who may also collaborate with each other so that they can both improve their sales.

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C. Lopez

Driving down to Knowledge town

C. LopezChauffer, Chauffer, Watertown
Chauffer, Chauffer, Watertown

Answered on May 24, 2019

Many brands are able to grow through acts of licensing and franchising. Franchising occurs when the business owner distributes their product or service through dealers. These dealers are most commonly referred to as franchisees. Examples of franchising organizations include Subway, 7-11, and McDonalds. The franchisee will put up the capital of the business and help promote it.

Many brands are able to grow through acts of licensing and franchising. Franchising occurs when the
Licensing is a business arrangement between two companies. One company allows the other to manufacturer the product or service, in exchange for payment. There are various types of business licenses that can be obtained such as patents, copyrights, designs, property, and trademarks.

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