Licensing or Franchising?

Question

It compares allowing other companies to use intellectual property like trademarks or technology for a fee (licensing) versus granting third parties the rights to operate a business under your brand and model (franchising).

which one is better?

Shannon J. Stafford · Accepted Answer

I’d go with licensing less control but also less hassle managing day to day operations

Violetta Chernobuk · Answer

Choose licensing if you want to expand with less control over daily operations, and your focus is on allowing partners to integrate your product or technology.
Choose franchising if you want to maintain brand consistency, provide a complete business model, and build a network of locations that closely follow your established practices.

Howahowa · Answer

Licensing and franchising are both business models that allow companies to expand their reach, but they differ significantly in terms of structure and control.

Licensing: This involves a business (the licensor) allowing another company (the licensee) to use its intellectual property (such as a brand, patent, or trademark) in exchange for royalties or a lump sum. The licensor typically provides less support, and the licensee has more freedom in how they run their operations. Licensing is generally simpler and involves less ongoing oversight.

Franchising: In this model, a business (the franchisor) allows the franchisee to operate a business using its trademark, business model, and often strict operational guidelines. Franchising offers more control over how the business is run, as the franchisor provides ongoing support, training, and a more structured system for operations. Franchisees typically have to follow detailed procedures and pay ongoing fees or royalties. carparkingapk.tr

Answer

Franchising sounds better to me! You keep more control over the brand which feels important

Answer

Licensing seems simpler. I’d rather just collect fees without worrying about managing  franchises

Licensing or Franchising?

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