BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Franchises and licenses are both business agreements in which certain brand aspects are shared in exchange for a fee. However, a franchising agreement pertains to a business’s entire brand and operations, while a licensing agreement only applies to registered trademarks.

Detailed explanation-2: -Key Difference Between Licensing and Franchising Licensing deals with products and goods like software, patented technologies, etc. Franchising is mostly related to service businesses like food chains, service centers of automobiles, etc.

Detailed explanation-3: -Under a franchise, the owner (franchisor) retains control of the brand and licenses (that is, grants permissions to) the franchisee to use its successful business model and brand. Licensing of intellectual property (IP) is at the heart of a franchise contract. So, in fact, a franchise includes licensing.

Detailed explanation-4: -Answer and Explanation: The answer is true. Franchising is a form of business organization in which a firm that already has a successful product or service licenses its trademark and method of doing business to other businesses in exchange for an initial franchise fee and an ongoing royalty.

Detailed explanation-5: -Basically, franchising means that you’re allowing another person to duplicate your business in another location, and licensing is when you allow someone else to sell your products. With both licensing and franchising, you will receive a fee from the person duplicating your business or selling your product.