franchise

It’s really a matter of the degree of interference and control.

Licensing is fairly ‘hands-off’ – apart from making sure the brand isn’t damaged. It might simply be a license to use a process, recipe or brand name.

Franchising is much more ‘hands-on’. Really it involves the frainchisor finding people (franchisees) to run ‘branches’ of your business – except that the branch is owned by the franchisee. However, the franchisee very much has to march to the franchisor’s tune with respect to how the franchise operates, the products it can sell and so on.

In both cases, royalties are paid to the franchisor/licensor.