Distinguish between licensing and franchising.



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