What is the difference between franchising and licensing a business?

Answer by  MuruganKanthan (24)

Franchising is the term that denotes using the name of a reputed company we can get the brand value for our own products for example Suguna chicken is common in all cities in India but it has various shop owners as franchisee.Licensing is that the company directly gives authority to install its branch in a particular city.

Answer by  SammyScooter (136)

There is a closer relationship in franchising than a parent company with their licensing counterparts. Franchising retains rights to the parent company's trademark and logo by showing representation between the two. Licensing doesn't retain rights to use the company's trademark and has to establish its own identity.

Answer by  rube26105 (379)

In the world of franchise regulation, 'substance' matters more than labels do not matter and just because you call something a 'license' does not mean that it is not a 'franchise'. In short, your license agreement might be a franchise. So, how do you determine if your license agreement 'crosses the line'? You ignore titles such as 'licensor', 'licensee', ship.

Answer by  Jessie124 (1885)

Franchising is where some buys a business but remains in contact with the seller. The seller is usually a large corporation, and that corporation has strict guidelines as to how they want the franchise run. They sometimes help financially and with advertising. A licensed business will mean you will not have such a close relationship with the seller.

Answer by  Gretchin (352)

CAT and CT Scan are the same they are used interchangeably. The full name is Computerized Axial Tomography. It is a machine that takes x-rays from different angles around the body.

Answer by  Baobao (1273)

Generally speaking, the first means the special permission to making some prescriptions/food, this company has the unique right of selling these special things that other companies can not.This is somewhat similar to patent.The second is only the general permission of running a company.

Answer by  cutiebee15hotmailcom (129)

You get a license to open a business and by franchising you are giving other people permission to market you products. Example: Martha Stewart has a license for her business, Walmart is a frachise that sells her product amongst other things.