what is the difference between negotiating a licensing or franchising agreement?

Answer 1

A licensing agreement usually gives you the right to manufacture and sell products under someone else's trademark. You have a significant leeway in where to locate your facilities, how to manufacture, and how to market the product.

With franchising, your options are much more limited. You will be located where the franchisor tells you (in fact, more often than not, you will pay the rent to the franchisor, who will own the premises); you will use only franchisor-approved equipment and processes (in fact, you will be required to be trained in using the equipment and managing the processes), you will not do any marketing on your own, but instead, will participate in campaigns organized by the franchisor. In fact, there is very little negotiations involved in franchising agreements; the franchisor usually tells you, "these are the terms, take it or leave it".

Answer 2

When you license something you have permisson from the organization to use their likeness for your specific purpose. When you franchise you own a part of an organization. Example: Say you own a store and want to use the NFL to advertise. I.E. a photo of an NFL player walking into your store, then you will need a liscense to use the NFL property. But if you were granted an expansion team then you would franchise your team as part of the NFL. Meaning you would gain all the profits generated by your team but you would still have to adhere to the laws and policies of the NFL.

Answer 3

The primary difference between simple trademark licensing and package franchising is in the type and degree of control exercised by the franchisor and licensor. The trademark licensor is interested in the quality of the final good produced by the licensee, not in the licensee's method of operation. The kind of control he exercises is thus likely to be limited to "passive" control such as inspection of product goods and testing to insure that quality standards are met. Package franchising, on the other hand, involves active control over the franchisee's "method of operation": The location of the business, the hours of operation, the management of the business, and other business matters.

Answer 4

study and read and you'll find out.