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Licensing Is A Legal Agreement Where The Right To Use or Benefit From A Trademark

Licensing involves granting legal permission to use intellectual property in exchange for compensation, but the licensor does not provide operational assistance. Franchising is a more comprehensive legal arrangement where the franchisor grants the right to replicate their business model and provides ongoing support, but retains control over branding and operations. If the goal is to expand the brand through additional locations, franchising is generally the better option. A multinational corporation has facilities and properties in multiple countries beyond its home country and aims to adapt its offerings to local markets. An international corporation only imports and exports without foreign investments or locations.

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30 views2 pages

Licensing Is A Legal Agreement Where The Right To Use or Benefit From A Trademark

Licensing involves granting legal permission to use intellectual property in exchange for compensation, but the licensor does not provide operational assistance. Franchising is a more comprehensive legal arrangement where the franchisor grants the right to replicate their business model and provides ongoing support, but retains control over branding and operations. If the goal is to expand the brand through additional locations, franchising is generally the better option. A multinational corporation has facilities and properties in multiple countries beyond its home country and aims to adapt its offerings to local markets. An international corporation only imports and exports without foreign investments or locations.

Uploaded by

Dan Di
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

Differentiate Licensing and Franchise


- Licensing is a legal agreement where the right to use or benefit from a trademark,
technology, or other legal rights is given by one party called the "Licensor," to the other
party called the "Licensee." To put it in a deeper perspective it is where the use of
intellectual property is compensated for, but an entity is free to run the company
however it wishes. The brand that gives it the license may determine the purpose of
using their intellectual property, but they will not provide the entity with any assistance,
such as site selection, training, promotion, or any of the other support systems that it
may enjoy when it is part of a franchise system. There is also a license arrangement
between a brand and someone who has an established business. Which brings the topic
to the Franchising, it is a legal arrangement where one party called the "Franchisor,"
grants the right to create, build, and repeat the franchisor's business operations to the
other party, called the "Franchisee." When their business models have been mastered
and established to make profit, companies typically start franchising and their products
have at least some regional recognition. So, you not only get to exploit the name of the
company, but in return for a fee, you also get access to all its support systems. You
conduct your company in franchising the way you are told to operate it because the
franchisor not only retains control over the intellectual property (the brand), but also
retains control over how the franchisor retains control. To conclude, Licensing is a legal
relationship which is restricted. Franchising is a more comprehensive legal arrangement
which does require a license. If the entity’s aim is to grow and improve its brand through
additional outlets or service areas, then franchising is the best legal model to follow.

2. Differentiate Multinational to International Corporation


- A Multinational Corporation applies to investments in other countries, but each country
does not have coordinated product offers. They are more focused on adapting their
goods and services to each local market in particular, such as Coca-Cola and McDonalds.
In at least one country, other than its domicile country, a multinational corporation
(MNC) has facilities and other properties. Usually, a multinational organization has
offices and/or warehouses in numerous countries and a centralized head office where
corporate management is organized. In developed nations, several multinational
corporations are centered. Multinational supporters argue that in nations that
otherwise would not have access to such opportunities or products, they build high-
paying employment and technologically advanced goods. Critics of these firms,
however, believe that these companies have excessive political control over states,
manipulate developing nations, and cause job losses in their own domicile country. An
International company, on the other hand, does not have investment outside the home
country unlike Multinational companies. International Corporations primarily refer to
imports and exports.

References:

https://frannet.com/resources/general/franchising-vs-licensing-what-is-the-difference/

https://www.franchiselawsolutions.com/franchising/licensing-versus-franchising/#:~:text=The
%20difference%20between%20licensing%20and,of%20control%20where%20the%20underlying

https://www.score.org/blog/truth-about-franchising-vs-licensing-3-minutes

https://pediaa.com/difference-between-international-and-multinational/

https://www.investopedia.com/terms/m/multinationalcorporation.asp#:~:text=A
%20multinational%20company%20generally%20has,those%20of%20many%20small
%20countries.

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