The document presents information on franchising and licensing. It defines franchising as an arrangement where a franchisor grants rights and authorities to a franchisee. Franchising allows others to sell a company's products or services and use their intellectual property rights. Licensing is defined as a business arrangement where a company authorizes another temporarily to access its intellectual property for consideration under specified conditions. Some key differences are that franchising provides a comprehensive business system for the franchisee while licensing only allows use of certain property for a period of time. Examples of popular franchises in India include McDonald's, Dominos, KFC, Pizza Hut, and Subway.

1. A PRESENTATION ON
FRANCHISING AND LICENSING
Submitted by
RABARI PINKESH 170143119022
RANA YASH 170143119023
RAVAL MITESH 170143119025
THAKOR SANDEEP 170143119027
VALAND NIRAL 170143119028
GOVERNMENT ENGINEERING COLLEGE
BHARUCH

2. FRANCHISING
• Franchising is an arrangement where franchisor (one
party) grants or licenses some rights and authorities
to franchisee (another party).
• Franchising is basically a right which manufacturers
or businesses give to others. This right allows the
beneficiaries to sell the products or services of these
manufacturers or parent businesses. These rights
could even be in terms of access to intellectual
property rights.

3. FEATURES OF FRANCHISING
• Firstly, under a franchising agreement, the franchisor
grants permission to the franchise to use its intellectual
properties like patents and trademarks.
• Secondly, the franchise in return pays a fee (i.e. royalty)
to the franchisor and may even have to share a part of
his profits. On the contrary, the franchisor provides its
goods, services, and assistance to the franchise.
• Finally, both parties in a franchise sign a franchising
agreement. This agreement is basically a contract that
states terms and conditions applicable with respect to
the franchise.

4. ADVANTAGES OF FRANCHISING
• A franchise can use franchising to start a business on a
pre-established brand name of the franchisor.
• This further also helps in building a brand name,
increasing goodwill and reaching more customers.
• franchising is a great way to expand a business without
incurring additional costs on expansion. This is because
all expenses of selling are borne by the franchise.
• sometimes a franchisee may get exclusive rights to sell
the franchisor’s products within an area.

5. DISADVANTAGES
• The franchise does not possess direct control over
the sale of its products.
• The franchisee may even leak the franchisor’s secrets
to rivals.
• No franchise has complete control over his business.
He always has to adhere to policies and conditions of
the franchisor.

6. EXAMPLES OF FRANCHISING IN INDIA
• McDonald’s
• Dominos
• KFC
• Pizza Hut
• Subway
• Dunkin’ Donuts
• Taco Bell
• Baskin Robbins
• Burger King

7. LICENSING
• Licensing is defined as a business arrangement,
wherein a company authorizes another company by
issuing a license to temporarily access its intellectual
property rights.
• i.e. manufacturing process, brand name, copyright,
trademark, patent, technology, trade secret, etc. for
adequate consideration and under specified
conditions.
• For example: Under licensing system, Coca-Cola and
Pepsi are globally produced and sold, by local bottlers
in different countries.

8. • The overseas company enters into a licensing
agreement with another company based in the
domestic country, for a specified period of time. The
two primary reasons for entering in the licensing
agreement are:
ü International expansion of a brand franchise.
ü Need for commercialisation of new technology.
WHY LICENSING ?

9. BENEFITS
• Revenue Generation
• Brand Recognition
• Ownership of the IP
• The licensor gets the advantage of entering the
international market at little risk.
• The licensee will benefit from superior technology to
produce better quality products or established
trademarks to better market his products.

10. DIFFRENCE BETWEEN FRANCHISING
AND LICENSING
• You might have come across the term of franchising
and licensing. As similar as two may sound, there is
quite a lot of differences between the two
• You can see that while a license provides the licensee
with the right use certain property for certain period of
time. The franchise provides the franchisee with a
comprehensive system for managing its business.
Accordingly franchise agreement is typically a lot more
prescriptive than a license agreement.

11. THANK YOU