Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA SBL

difference between franchise and licensing

Aaw029813y ago
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 ?
gromitgromitTutor13y ago#1
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.
gromitgromitTutor4y ago#2
I think you need to read that article again. I stand by what I said.
This topic is locked — no new replies.