Franchising vs. Licensing: What Is the Difference.
The Major Difference Between Franchising and Licensing We would like to take a minute to answer a very common question often asked: “What is the difference between franchising and licensing?” Bottom line is it boils down to control.
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.
Licensing and franchising can be done both as a business owner and as someone looking to enter a specific market. If you are a business owner, you may want to license the use of your brand or products to another business in order to gain more exposure for your company and earn revenue on the side.
Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products.
Franchising USA is a monthly digital publication bringing you all the latest news, expert advice, and information from the world of franchising. Written with franchisees in mind, Franchising USA is a valuable resource for legal and financial advice, marketing and business information, as well as franchise profiles and in-depth features.
Compare Licensing vs Franchising a Business Costs.. However, licensing a business is generally far less expensive than buying a franchise. Licensing a Business Pros. Cost - When you license a business, there are no franchise fees, marketing fees or royalties. You’ll pay an upfront fee to purchase the license, but recurring costs will be.
Research is Key! To find out if franchising is right for you (or which franchise is for you!), make sure you do your research. Franchise Business Review has compiled a list of franchises that offer the best franchisee satisfaction for your perusal. You can also talk to other franchisees in the industry you’re looking at to hear their experiences and investigate the level of support their.