Question

Franchising is similar to licensing.

• A. True
• B. False

Answer 1

The correct option is A True

Under a franchise, the owner (franchisor) retains control of the brand and licenses (that is, grants permissions to) the franchisee to use its successful business model and brand. Licensing of intellectual property (IP) is at the heart of a franchise contract. So, in fact, a franchise includes licensing.