I. Concept of Franchising and Licensing Franchising The franchisor authorizes the franchisee to use the business resources such as trademarks, trade names and business models that he has the right to authorize others to use by signing a contract; According to the contract, the franchisee engages in business activities under the unified management system and pays franchise fees to the franchisor. A license is a written proof that the non-owner has the right to participate in the restricted behavior or event, and the relevant authorities have granted him the relevant rights. In some industries, the law requires license management.
A business license that must be approved and handled by the competent department. Franchising is a variant of licensed trade, in which the franchisor transfers the whole operating system or service system to an independent operator who pays a certain franchise fee. Second, the comparative analysis of licensing and franchising. Franchising and franchising have their own shortcomings and advantages, but there are also differences. After deeply understanding the advantages and disadvantages of franchising and authorized operation, under what circumstances should enterprises and investors with investment intentions use franchising? Under what circumstances is it licensed to operate? It has become a problem that plagues them. Franchising is a very worthwhile investment path for investors who have certain industrial investment dreams, sufficient funds, but no specific entrepreneurial goals, but can afford the franchise fee.
Road. For franchisees who have successfully made profits, they can expand their company's geographical breadth and popularity by absorbing many franchisees, charge franchisees a lot of joining fees, expand production by providing standardized management and operation mode, realize a larger sales chain, reduce costs and financial risks, and realize
Maximize enterprise value. For franchisees, you
Paying a sum of money can buy a successful business model accumulated by others for a long time, which can be said to get twice the result with half the effort.
Do more with less.
Franchising is a kind of management right, and licensing is recognized.
Camp is a business certificate. Different from the mother-child relationship between franchisor and franchisee, licensor and licensee are a cooperative relationship. When the licensee needs to profit from intangible assets such as patents, trademarks and proprietary technologies without spending a lot of investment, it can use the license to operate and sign a license contract with the licensor. Licensor gains benefits by selling the right to use its intangible assets. Three. Suggestions on the development of licensing and franchising