difference between franchise and licensing

A license gives someone to use a brand or process in exchange for a royalty. Apart from quality control to protect the brand name, it’s fairly hands off.

A franchise is similar in many ways, but is a closer arrangement. Normally the franschisee pays the franchisor to buy a franchise then the franchisor supplies the franchisee with equipment and raw materials to carry on the business. Payment is, of course, made for supplies. These is also often a royalty based on sales or profit. The franchisor will usually closely stipulate how the franchisee is to carry on the business.