Licensing Versus Franchising - What's the Difference?
A multi-unit franchise is an agreement where the franchisor grants a franchisee the rights to open and operate MORE THAN ONE unit. There are two ways a multi-unit franchise can be achieved: an area development franchise or a master franchise. Under an area development franchise, a franchisee has the right to open more than one.
Franchising It is said that today there is a total of 750,000 franchise establishments within the U.S. itself. Franchising is a long-term agreement between two parties, and is when the franchisor grants the franchisee the right to use a trademark or trade name in a business process.
What Is Franchising Licensing Economics Essay. Team members: Low Chun Kit J11009011 N1. Tan Chun Keat J11009425 N1. Ng Yong Leng J11009041 A1. Lim Chin Ying J11008972 N1. Low Zhi Lun J12010861 A1. Table of Contents. Question.
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Even if you don’t control most aspects of the franchisee’s business, if you suggest most of the above, then you are likely franchising (rather than licensing) your business. Risks of Becoming an “Accidental Franchisor” If a licence agreement is actually a franchise agreement, then the Franchising Code of Conduct will apply.
Product Distribution Franchising: Such franchising involves a system in which a franchisor gives license to the franchisee to sell the specific products under the trademark and brand name of the franchisor. This type of franchising is commonly used to market automobiles (such as Chevrolet), soft-drinks (such as Coca-Cola) and appliances.
Differences between Licensing and Franchising. We will now turn to the differences between licensing and franchising. After having clarified what these two concepts actually mean, one can also understand how licensing and franchising differ. The main differences are summarized in the following table: Factor.