Scribd
Upload
381 views22 pages

Franchising & Licensing

Franchising and licensing allow companies to expand their business models. Franchising involves a franchisor granting the right to an individual franchisee to open locations using the franchisor's brand. Licensing is a contractual agreement where a licensor permits a licensee to use the licensor's intellectual property in exchange for fees. Both provide benefits like rapid expansion and accessibility to new markets but also risks if not properly monitored. Examples include fast food franchises and licensed software.

Uploaded by

Kartik Rawat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
381 views22 pages

Franchising & Licensing

Franchising and licensing allow companies to expand their business models. Franchising involves a franchisor granting the right to an individual franchisee to open locations using the franchisor's brand. Licensing is a contractual agreement where a licensor permits a licensee to use the licensor's intellectual property in exchange for fees. Both provide benefits like rapid expansion and accessibility to new markets but also risks if not properly monitored. Examples include fast food franchises and licensed software.

Uploaded by

Kartik Rawat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

FRANCHISING

AND LICENSING
BY:
KARTIK RAWAT:FB19087
TANYA GUPTA:FB19120
GLOBAL
FRANCHISING?
FRANCHISOR: It is a company that allows an
individual to run the location of their business. Fast-
food companies are often franchised.

FRANCHISEE: it is an individual or a company that


holds a franchise for the sale of goods or the operation
of the service.
TYPES OF
FRANCHISING
• BUSINESS • PRODUCT • MANAGEMENT
FORMAT DISTRIBUTION FRANCHISE
FRANCHISE FRANCHISE

1st 2nd 3rd


BENEFITS
LOWER
RISK

BUSINESS
RAPID
EXPANSIO
GROWTH
N
DISADVANTAGES
Reputation
Adversely
Affected

Expensive
CURTAIL
to Monitor
SUCCESS
Franchises
EXAMPLES
Licensing is a Contractual
Agreement between two
entities in which one,
called Licensor(who owns a
technology), permits the
other, called Licensee to
use it’s intellectual property
in exchange for some fee or
royalty.
BENEFITS
ACCESSIBILITY TO NEW
MARKETS

QUICK EXPANSION

TRADE RESTRICTIONS

MINIMIZED POLITICAL RISK


DISADVANTAGES
RISK LOSS OF CONTROL DAMAGE OF IMAGE
EXAMPLES
Franchising Licensing

Registration Required Not Required

Territorial Rights Offered to franchisee Not offered; licensee can


sell similar licenses and
products In same area.

Support and Training Provided by franchiser Not provided

Royalty Payments Yes Yes

Use of Trademark/Logo Logo and trademark Can be licensed


retained by franchiser and
used by franchisee.

Examples McDonalds, Subway, 7-11, Microsoft Office


Dunkin Donuts.

Control Franchiser exercise control Licensor does not have


over franchisee control over licensee

You might also like