Q.8:- Distinguish between licensing and franchising.
Answer:-
| Licensing | Franchising |
| The licensor grants licence to a foreign company (licensee) to produce and sell goods under the licensor’s logo and trademarks for a fee. | The franchiser grants a foreign firm (franchisee) the right to operate a business using a common brand name for an initial or a regular fee. |
| Operations are related to production and marketing of goods. | Operations are related to the services business. |
| Less stringent rules and regulations | Strict rules and regulations |