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Hi,
I got very confuse re the difference between franchise and licensing.
Franchise is franchises pay to use a company’s brand, expertise and support servie
but license is to let other ppl use your brand ?
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.
No, you took it wrong. Franchise means when the major branch give you the formula but in licensing it’s no t like that. You can read this article for figuring out about their exact meaning:
https://legamart.com/articles/franchising-or-licensing-pros-and-cons/
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