The franchise
The franchisor provides a contract that enables the franchisee to pass on knowledge, unique signs (sign and brand) and training. Entry fees and royalties are paid by the franchisee to join the network.
Franchising is a sure-fire way to expand, as both parties agree to the terms and conditions. Franchising is a way of rapidly conquering a market by opening several sales outlets in line with the business model that has made the brand famous.
A trademark license is an affiliation contract between a licensor (i.e. the trademark) and a licensee (i.e. an entrepreneur). The company rents the trademark it has created and protected in the territory covered by the licensing agreement. The licensee, on the other hand, is authorized to use the brand in its own commercial activities.
Brand licensing
Leasing a brand allows you to market a product, test it on a large scale and increase sales. The licensee can benefit from the brand's fame and notoriety when launching its products or services.
These two types of contract are designed to help a company develop its brand and its business.
- Brand operation. A brand license gives the licensee greater freedom to manage and operate his business. The contract stipulates that the licensee must respect the brand's image and DNA. For a franchise, on the other hand, the licensee must adhere to the brand's vision.
- Training is mandatory for franchises, unlike brand licensing.
Franchising is a way of using not only the brand, but also what it is renowned for. But it requires you to follow certain methods. The choice is yours: the freedom of brand licensing or the support of franchising.
