The difference between a franchise contract and a licensing contract is that a
A) franchise contract is more specific and usually longer in duration.
B) franchise contract must include a foreign government.
C) licensing contract covers more aspects of operations.
D) franchise contract involves less control and less risk.

Question

Quizplus · Accepted Answer

Licensing enables a company to receive a royalty or a fee in exchange for the right to use its trademark, patent, trade secret, or other valuable item of intellectual property. Franchising contracts generally include a broader range of factors in an operation and have a longer time period during which the agreement is in effect.

The Difference Between a Franchise Contract and a Licensing Contract