question_answer 18)

Distinguish between licensing and franchising.

Answer:

(i) Licensing is an agreement between licensor and licensee where as franchising is an agreement between franchisee and franchiser. (ii) Licensing means permitting other party in a foreign country to produce and sell goods under trademark, patents where as franchising means sell or distribute the branded products in a specific geographical area. e.g., through its franchising system MC Donald’s operates first food restaurants in the whole world.