Licensing vs. Franchising

License and franchise license license can be completed at low cost quickly. If you're considering expanding your business with franchises, (1) it costs far less than the franchise and (2) it will take about 10 to 15 business days to complete, so the license is another option. Moon and moon.

Contractual agreement: licensing and franchise, single payment and royalty are based on existing limited human resources, licenses - lump sum agreement is the best. First of all, the paper has little effect. Secondly, monitoring is easy. However, he must classify the ratings of each country, taking not only the possibility of his "emotion" but also the macroeconomic facts. This is to ensure that Licensee does not feel unfairly treated. Currently there are major differences in franchise / license fee. If Andrew clicking on a multinational company or small business does not want to manage the expansion of the business, the group advises him to sell the recipe / business to the multinational company. Multinational companies have capital and maturity to aggressively develop their business. They can even strategically and effectively improve the business of Road Stow.

The third entry method is franchise. Franchise is a business format that allows franchisers to license trademarks and operating methods to franchisees in exchange for regular royalties. Franchising is also a form of licensing. The franchisor can control the franchise more finely than the license. Under the franchise, an independent organization called a franchise operates the business under the name of another franchise company. Franchiser provides the following services to franchisees: reputation of trademarks, operating systems and products

Franchising is similar to licensing, but often involves long-term license agreements. The franchise is basically a special form of license, and franchisee members insist that franchisee members comply with strict rules on how to operate the business. Franchisers usually help franchisees manage the company permanently. Like licenses, franchisees usually receive royalties. This is equivalent to the franchisee's revenue share. The franchise is mainly used by the service company, as the license is mainly done by the manufacturing company (Dunning and McQueen, 1981).