Licensing

Franchising

1. Permitting another party in a foreign country to produce and sell goods under one’s own trade mark, patent or copy right in lieu of some fee is termed as licensing e.g. Pepsi and Coca Cola.

2. It is relatively liberal in terms.

• When permission is given by a producer of one country to the producer of another country with regard to sale of services under its brand name, trademark etc. is known as franchising e.g. McDonalds.

• It is very rigid in its terms and conditions.