Which of the following is a similarity between licensing and franchising?
A) Under both, the produced goods are subject to tariff and nontariff barriers.
B) Both require the parent company to invest in production equipment and facilities to produce the
Product.
C) Both are types of cooperative contracts.
D) Under both, the parent company retains complete control over the quality of the product or service sold by another company.

Question

Quizplus · Accepted Answer

Both licensing and franchising are types of cooperative contracts where the parent company allows another company to use its intellectual property or business model in exchange for royalties or fees.

Which of the Following Is a Similarity Between Licensing and Franchising