The distinction is important find out why licensing can be a good way to start if you are interested in franchising your business, rather than. For a company looking to expand, franchising and licensing are often appealing business models in a franchising model, the franchisee uses another firm's successful business model and brand name to operate what is effectively an independent branch of the company.
We would like to take a minute to answer a very common question often asked: “what is the difference between franchising and licensing” bottom line is it boils down to control it really depends on how much control you want to have over your operators traditionally a business owner (like you) wants everybody to operate under. Franchising and licensing own your future six days a week, in neighborhoods all across the country, more than 2,000 chick-fil-a restaurants are serving hand-breaded chicken sandwiches, hot waffle fries and genuine hospitality.
Filled with illuminating examples, stories from the field, and dozens of forms for drafting franchising agreements and licensing programs, the fourth edition of franchising licensing covers all the strategic, legal, financial, and operational aspects of these complex but highly profitable business strategies.
Skip to content menu back charburgers sandwiches salads on the side kids’ meals. Franchising is a combination of the name, brand or trademarks along with the business system a franchise model requires the use of a ufdd, or uniform franchise disclosure document that clearly identifies and discloses the details of the business relationship and commitments required from both the franchisor and franchisee.
The difference between licensing and franchising can be drawn clearly on the following grounds: licensing is an arrangement in which a company (licensor) sells the right to use intellectual property, or produce a company’s product to the licensee, for a negotiated fee ie royalty. Learn more about chick-fil-a's franchising and licensing.
Franchise and licensing agreements let other entrepreneurs build on your business name a franchisee pays for the privilege of opening a store like yours a licensee gets to sell products with.
Licensing and franchising can be done both as a business owner and as someone looking to enter a specific market if you are a business owner, you may want to license the use of your brand or products to another business in order to gain more exposure for your company and earn revenue on the side. The chick-fil-a franchise opportunity requires that the individual selected as the franchisee work in the restaurant fulltime having no other business endeavors this is a hands-on opportunity for the franchisee.