Licensing And Franchising Ppt To Pdf

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licensing and franchising ppt to pdf

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You need to do your due diligence to determine which model best suits your strengths. Do you want to work in your business or have others working for you?

By Madhuri Thakur. Licensing refers to an arrangement between licensor and licensee where latter party would acquire the right to use products and goods where the ownership remains with the licensor whereas Franchising refers to an arrangement between franchiser and franchisee where the latter will enjoy the ownership of a business on behalf of the franchiser in lieu of a fee where the processes are closely controlled by franchisor therefore it is generally seen that licensing is for products and goods whereas the franchising model is used more in service providing industry.

THE BENEFITS OF FRANCHISING

By Madhuri Thakur. Licensing refers to an arrangement between licensor and licensee where latter party would acquire the right to use products and goods where the ownership remains with the licensor whereas Franchising refers to an arrangement between franchiser and franchisee where the latter will enjoy the ownership of a business on behalf of the franchiser in lieu of a fee where the processes are closely controlled by franchisor therefore it is generally seen that licensing is for products and goods whereas the franchising model is used more in service providing industry.

These two jargons are usually synonymously used while marketing or selling a product whose brand value is not typically owned by the seller; however, there is a very fine line of difference between these two modes of business. Today we attempt to understand the differences between Licensing vs Franchising. To understand Licensing, let us take the example of Walt Disney. It is the registered owner of cartoon characters like Mickey Mouse, Donald Duck, etc.

There are many merchandises which bear these characters on it; like bags, cups, bottles, etc. This kind of arrangement is referred to as licensing. Now suppose you feel like eating a pizza, as opposed to a home-made pizza offered by your mother; the obvious choices that come in your mind are Pizza Hut, Dominos, etc.

The brand value which is built after years of struggle is at stake for these niche companies. This in return ensures Pizza hut that it can penetrate different markets without a compromise in quality of service and the franchisee, in turn, is benefitted by the economies of scale that comes with an already established brand.

Though both share similar advantages, licensing can be called a subset of franchising; i. Franchising is a much broader concept since it involves a greater degree of control by the franchisor. This has been a guide to Licensing vs Franchising. Here we discuss the top difference between Licensing and Franchising along with infographics and comparison table. You may also have a look at the following articles —.

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By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy. Forgot Password? Difference Between Licensing and Franchising Licensing refers to an arrangement between licensor and licensee where latter party would acquire the right to use products and goods where the ownership remains with the licensor whereas Franchising refers to an arrangement between franchiser and franchisee where the latter will enjoy the ownership of a business on behalf of the franchiser in lieu of a fee where the processes are closely controlled by franchisor therefore it is generally seen that licensing is for products and goods whereas the franchising model is used more in service providing industry.

What is Licensing? Popular Course in this category. View Course. Email ID. Contact No. Please select the batch. Ownership of the business is with the franchisee, he purchases the right to run the same business on behalf of the franchisor in exchange of fees. Standard agreement governed by contracts law between the parties. Franchisor gets access to the geographically diversified marketplace without compromising on brand value.

Franchisee gets continual support from the franchisor to extend an already successful business. Licensor does not have control over the ultimate use of its intellectual property rights.

The heavy initial investment by the franchisee to meet the quality standards of the franchisor. The degree of autonomy is very less for the franchisee in the operational matters of the business.

Licensing Vs. Franchising

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Motivated and Effective Management. The local management of each franchised unit will be highly motivated and very effective. They treat the franchise units as their own and that will usually lead to higher sales and profit levels. Fewer Employees. Speed of Growth.


INTRODUCTION TO FRANCHISING AND ITS IMPORTANCE TO The licence involves the franchisor granting a right to use the format/system, trademark, Set up systems/procedures and support functions; Study the operations manual.


Franchising

The difference between licensing and franchising is that licensing is a legal relationship that is limited in scope and relates only to the use of a trademark or technology, whereas franchising involves a relationship that goes beyond the grant of a license and includes a relationship of control where the underlying business is required to operate in accordance with designated systems and procedures. When comparing franchising vs licensing, many times, the question arises as to whether or not licensing is an alternative to franchising? The answer to that question is that, no, licensing is not an alternative 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.

Presentation about Franchises.pptx

There are several ways of entering the global arena to serve the foreign market; that helps to earn better returns for the company. This can be done by transferring skills and product offering, which they acquire from their unique competencies to the foreign market. Basis for Comparison Licensing Franchising Meaning Licensing is an arrangement in which a company licensor sells the right to use intellectual property or produce a company's product to the licensee, for royalty.

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    Product distribution franchises –licences TM & logo, Fr'ee not provided with In event of conflict between the FA and the amended Manual, the FA would prevail.