What are the key differences between licensing and franchising?

What are the key differences between licensing and franchising?

Licensing allows one party to use another's intellectual property, while franchising involves a business model with ongoing support.

Can you give me examples of each?

Sure! An example of licensing is a software company allowing others to use its technology. Franchising is like McDonald's, where you operate under their brand.

What are the advantages of franchising over licensing?

Franchising often provides more support, training, and a proven business model, which can lead to higher success rates.

Are there any disadvantages to franchising?

Yes, franchising can involve higher initial costs and less operational freedom compared to licensing.

Which option is better for a new entrepreneur?

It depends on your goals. If you want more support and a recognized brand, franchising might be better. If you prefer independence, licensing could be the way to go.