The Post-American World
Franchising Vs. Licensing
Jacoby Ponder
Reading this article I could only have one thing in mind as a small business owner myself, and that was to discuss options other then buying. Based on the reading as well as my own research this is what I came up with Franchising? Or Licensing.
Franchising vs. Licensing: An Example
Franchising: Some fast-food chicken franchises cost more than one million dollars to get into, a LFC store costs as little as $150,000 to establish a planned restaurant, even less for an existing one. This allows the “small guy” access to a successfully established product with a 30 year track record. Our relatively low start-up expenses have attracted hard working entrepreneurs with limited financial means, and because of this, 90% of LFC owners are minorities, whom many have achieved a high level of financial success. LFC competes directly with the big names like KFC, Popeyes and Churches; our highest volume stores are surrounded by these businesses.
Licensing: The only requirements are that you purchase LFC ingredients (Seasoned Flour, Red Pepper Mix, Dirty Rice Mix) and imprinted items (boxes, bags, and cups with the LFC logo printed on them) through a designated LFC distributor.
Definitions Franchising is a business model in which you purchase a license of a specific business. Franchising is a term which can be applied to just about any area of economic endeavor. Franchising encompasses products and services from the manufacture, supply for manufacture, processing, distribution and sale of goods, to the rendering of services, the marketing of those services, their distribution and sale.
Licensing is granting of permission to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions. It prevents others from exploiting the idea, design, name or logo commercially.
It is a business arrangement in which a local firm in the host country produces goods in accordance with another firm's (the
Jacoby Ponder
Reading this article I could only have one thing in mind as a small business owner myself, and that was to discuss options other then buying. Based on the reading as well as my own research this is what I came up with Franchising? Or Licensing.
Franchising vs. Licensing: An Example
Franchising: Some fast-food chicken franchises cost more than one million dollars to get into, a LFC store costs as little as $150,000 to establish a planned restaurant, even less for an existing one. This allows the “small guy” access to a successfully established product with a 30 year track record. Our relatively low start-up expenses have attracted hard working entrepreneurs with limited financial means, and because of this, 90% of LFC owners are minorities, whom many have achieved a high level of financial success. LFC competes directly with the big names like KFC, Popeyes and Churches; our highest volume stores are surrounded by these businesses.
Licensing: The only requirements are that you purchase LFC ingredients (Seasoned Flour, Red Pepper Mix, Dirty Rice Mix) and imprinted items (boxes, bags, and cups with the LFC logo printed on them) through a designated LFC distributor.
Definitions Franchising is a business model in which you purchase a license of a specific business. Franchising is a term which can be applied to just about any area of economic endeavor. Franchising encompasses products and services from the manufacture, supply for manufacture, processing, distribution and sale of goods, to the rendering of services, the marketing of those services, their distribution and sale.
Licensing is granting of permission to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions. It prevents others from exploiting the idea, design, name or logo commercially.
It is a business arrangement in which a local firm in the host country produces goods in accordance with another firm's (the