Which of the following statements best differentiates between franchising and licensing?
A)Licensing gives a company greater control than franchising over the sale of its product in a target market.
B)Franchising is common in manufacturing industries while licensing is primarily used in service industries.
C)Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property.
D)Licensees must often meet strict guidelines on product quality, day-to-day management duties, and marketing promotions unlike franchisees.

Question

Quizplus · Accepted Answer

Franchising involves a relationship where the franchiser provides ongoing support and resources to the franchisee, including brand guidelines, business models, and operational support. Licensing typically involves a one-time transaction where the licensor grants the licensee the right to use intellectual property, without the ongoing support characteristic of franchising.

Which of the Following Statements Best Differentiates Between Franchising and Licensing