Business : International Business

Running head: INTERNATIONAL BUSINESSInternational businessNameInstitutional Affiliation1INTERNATIONAL BUSINESS2Explain how franchising agreements differ from licensing agreements.Both the franchising and licensing agreements fall under the management contract. It isan arrangement where operational monitoring of any enterprise is based on a contract in aseparate holding, and it performs necessary managerial roles in exchange for a given fee(Klarfeld, 2003).Licensing in business is a plan where the owner of an intellectual property grants anotherparty permissions to use the property regarding trademark, brand names, patents and copyrightfor a defined time in return for royalties or other types of compensation. The ownership of theintellectual property is however not transferred upon this agreement. Franchising, on the otherhand, is more like licensing but in addition, a firm is not only given rights to use the property ofanother firm, but also the entire business operating system such as advertisement campaigns anddistribution systems of the parent company. This is done in exchange for an initial and ongoingfee or royalties and in some cases both of them depe ...


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