Total views 38. Detailed contracts and ongoing monitoring are equally as essential to the success of this international business strategy. Marketing in the Global Firm 464 17. Licensing is giving legal rights to in-market parties to use your company’s name and other intellectual property. Franchising is a business model where the franchisor extends business know-how, intellectual rights and the right to operate in the name of a brand for consideration (usually in the form of fees and royalties) to the franchisee. Two Types of Contractual Entry Strategies • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation • Franchising: An arrangement in which the firm allows another the right to use an entire business system. Which mode is to be used in which situation 5. Franchising is governed. Test. Geb 3375 Introduction to International Business – Study Guide Exam 3_ Part1 1 Introduction to International Business Study Guide Exam 3 – Part 1 Chapter 16: Licensing, Franchising and other Contractual Strategies With this chapter we continued the “entry strategies” part we had interrupted for exam 2. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. licensing is the limitation placed on licensing agreements. franchising, wholly owned foreign subsidiaries b. Chapter 15: Licensing, Franchising, and Other Contractual Strategies Key Elements Contractual Entry strategies in. A Definition of the Franchise Concept In its broadest sense, a “franchise” is a contractual relationship between a “franchisor” and an independent “franchisee” whereby the former licenses the latter to distribute aFranchising: Franchising is a common strategy used by businesses seeking to expand their operations in a risk-conscious manner. In some cases, it’s either for five years or can be for 20 years. 4 Understand franchising as an entry strategy. Franchise Agreements are the core operating principles that define the relationship between the franchisor and the franchisee. Study with Quizlet and memorize flashcards containing terms like Test Your Comprehension, 15-8. To sum up, there are various methods that a firm can utilize in its foreign market entry market strategy. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket. In other words, ownership rights in franchising are seen in the ratio of company-owned to franchisee-owned stores and residual income rights, as traditionally conceptualized in Fig. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 1. C) cross licensing. Partnering, licensing, franchising, joint venture creation, business acquisition, and Greenfield ventures represent the spectrum of market entry opportunities. Study with Quizlet and memorize flashcards containing terms like Build-operate-transfer (BOT), contractual entry strategies in international business, Intellectual Property and more. View Overview. An industrial design is intended to ________. The firm that grants such authorization to the other firm is known as the licensor, and the firm in the foreign. Flashcards. Direct exporting allows consumers or businesses in new markets to easily buy your products wholesale, where you handle the shipping. Internal: Strategic. Test. d. Terms: a. 13 8. An organisation will need to determine their desired level of commitment, flexibility, control, presence and risk when going global, in order to choose the entry mode which best suits their situation. c. Licensing An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for. True/False . In this section, we will explore the traditional international-expansion entry modes. cavusgil ib im 15 - CHAPTER 15 LICENSING FRANCHISING AND OTHER CONTRACTUAL STRATEGIES DETAILED CHAPTER OUTLINE INTRODUCTION The opening vignette is. Licensing specifies the territory as well as period. Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. Terms in this set (22) contractual entry strategies in international business. 25 “Market entry options”). When considering entering international markets, there are some significant strategic and tactical decisions to be made. From a licensee standpoint, there are fewer risks in product development,. Learn. Essentially, you need to decide whether you want to buy a franchise or own your own business while pursuing licensing opportunities. Chapter 8: Global Products. Post termination issues. The licensor provides no technical support or assistance in most cases. Similar to exporting, licensing is an easy way for a company to enter an international market quickly and without the need for laying out much capital. dynamic, flexible choices 5. 7. Merger and Acquisition ii. 2. c. From a licensee standpoint, there are fewer risks in product development, market testing, manufacturing, and distribution. management contracts. Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. Licensing. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. commercial centers provide the following services: business facilities; translation and clerical services; a commercial library with legal information; and assistance with contracts and export/import arrangements. View final ch 15 man3600. Test. - Firms that use licensing often can avoid expensive entry as is usually required in FDI. They generate a consistent, stable level of earnings from foreign operations. Licensees also enjoy lowered risk because they're usually entering the marketplace with a known quantity and a built-in customer base. strategies. Fast entry, low risk. Patent licensing is a licensing that a licensor gives to the licensee to grant permission to conduct patent activities. , Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in. Geb 3375 Introduction to International Business – Study Guide Exam 3_ Part1 1 Introduction to International Business Study Guide Exam 3 – Part 1 Chapter 16: Licensing, Franchising and other Contractual Strategies With this chapter we continued the “entry strategies” part we had interrupted for exam 2. Flashcards. Ask AI New. Verified Answer for the question: [Solved] Which of the following challenges is applicable to the franchisee in a franchising agreement? A) The franchisee must make their own arrangements to acquire initial training and know-how. C) licensing contract covers more aspects of operations. Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures) "Moderate": -control available to the focal firm over foreign operations. Question 80. cross-border contractual relationships share several common characteristics. After few years, once the know- how is transferred, there is a risk that the foreign firm may begin to act on its own and the international firm may therefore. The franchisee is. -flexibility. Licensing is expensive and it requires process like agreement & It is similar as Franchise Operation. an advanced form of licensing in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation. International Business Strategy, Management & the New Realities. Why would a company choose to use a contractual mode of entry rather than an investment mode? Contractual forms of entry (i. Expert Help. Licensing. Abstract. and industry experts about instructions to franchise your business. Study with Quizlet and memorize flashcards containing terms like Strategic alliances involve: a. Pages 6. , licensing and franchising) have lower up-front costs than investment modes do. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. Licensing •A contractual agreement whereby one company (the licensor) makes an asset. Licensing An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for. Get Quality Help. Disadvantages. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. embargo, In the context of various strategies for reaching global markets, which of the following strategies. A) advanced economies B) economies with high PPP C) First World countriesthe statutory protections of franchise laws even if it wants to on advice of legal counsel. They are governed by a contract that provides the focal firm a moderate level of control over the foreign partner. Licensing, Franchising and other Contractual Strategies. Test. Question 74. Study with Quizlet and memorize flashcards containing terms like Licensing, franchising and other contractual strategies are considered _____ control strategies, Contractual Relationships between a focal firm and a foreign partner are, Intellectual Property refers to. Markman et al. The Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. firm can pursue individually or in conjunction with other entry strategies 4. Representatives of the Azoo government are reviewing the project bids. Quizlet flashcards, activities and games help you improve your grades. Florida State University. 2. Solved . licensing is the limitation placed on licensing agreements. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in IB, Licensing def, Licensing pro and more. 2 Franchising as an expansion strategy. First, mature products in a domestic market might find new growth opportunities overseas. A) markets competing products for significantly lower prices B) uses the licensing asset to create products of poor quality C) refuses to pay the agreed upon royalties to the licensor D) does not guarantee future expansion in the. Franchising allows franchisors to function effectively with a much leaner organization. Learn. Chapter 16 - Licensing, Franchising, and Other Contractual Strategies. Another popular way to expand overseas is to sell franchises. -risk. 1. One of the major differences when it comes to franchising vs. Chapter 15: Licensing, Franchising, and Other Contractual Strategies Key Elements Contractual Entry strategies in Franchising and licensing both offer business opportunities with some of the work already done for you, but that doesn't mean they're exactly the same. Second, some firms find it less risky and more profitable to export. An Introduction A. Match. to a foreign partner in exchange for a continuous the firm allows another the right to use an specific products, as well as the rights to distribute. The agreement so creates a franchise relationship is the franchise agreement and aforementioned parties to a franchise agreement are the franchisor and to french. Match. A modern approach to international business. docx from INT- 113 at Southern New Hampshire University. University University of. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. 4. 1. 13 8. e. Multiple Choice . Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. There are six basic options available: (1) exporting, (2) licensing, (3) franchising, (4) creating a joint venture or strategic alliance (5) acquisition/creating a wholly owned subsidiary, and (6) greenfield/wholly owned subsidiary (Table 9. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. Franchising is governed by an elaborate agreement specifying the responsibilities and duties of both the parties involved. On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. ENTERING AND OPERATING IN INTERNATIONAL MARKETS; 13. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. Cavusgil, 3edition, Licensing Franchising and Other Contractual Strategies, Licensing, Franchising, Franchise, Chapter16. In this chapter, you will learn about: Contractual entry strategies Licensing as an entry strategy Advantages and disadvantages of licensing Franchising as an entry strategy. The most common methods firms join international trade are through contractual entry strategies such as direct exporting, franchising, licensing, management contract, contract manufacturing, buying a company, and joint ventures. Verified Answer for the question: [Solved] Which of the following is TRUE about cross-border contractual relationships? A) It is a more visible strategy than FDI and draws a lot of criticism from the local market. By signing the franchise contract, a franchisee typically surrenders. includes exchange of intangibles and services 3. Firms can pursue them independently or in conjunction with other entry strategies. Licensing ii. A license is much more limited than a. Advantages. Two Types of Contractual Entry Strategies • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation • Franchising: An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other. Exporting, joint ventures, direct investment, franchising, licensing, and various other forms of strategic alliance can be considered as market entry modes. Fast entry, low risk. Low control, low local knowledge, potential negative environmental impact of transportation. docx from BUS MISC at Florida State University. Franchising. B. They provide dynamic flexible choice View LICENSING from BUSINESS A M0804455 at Ain Shams University. Question 74. When a business enters a foreign market after other foreign firms, the situation is defined as ______ entry. Study with Quizlet and memorize flashcards containing terms like Licensing, franchising and other contractual strategies are considered _____ control strategies, Contractual Relationships between a focal firm and a foreign partner are, Intellectual Property refers to and more. Created by. Discover. Read other and watch their success stories!. Verified Answer for the question: [Solved] Which of the following is true about franchising as an entry strategy? A)It provides firms with minimum control over foreign operations. Process. There are two major types of market entry modes: equity and non-equity. includes exchange of intangibles and services 3. True or false: Transportation costs would have an effect on which entry mode a company uses. B) An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its. Match. Licensing. 16: Licensing, Franchising, and Other Contractual Strategies unique aspects of. Dispute settlement 4. 25 “Market entry options”). (2004) differ between ownership-bas ed entry modes (OBEs) and contract based modes (CBMs). Franchising suggests the use of a whole package of signature products and business solutions, whereas licensing allows entrepreneurs to leverage certain individual property and produce and. Learn. 2. a. ) Bringing ideas for business in other countries to new markets. Equity relations allow firms to have some direct control, while contractual does not. • About 70 percent of the more than 2,000 Body Shop stores worldwide are operated by franchisees, while the rest are owned by Body Shop headquarters. Franchising is an arrangement in which the. CONTRACTUAL STRATEGIC ALLIANCES i. The main difference between the two is the duration of the commitment involved. Learn. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. Business model: The first difference is in the business model. What are Franchising? Franchising is an business agreement that includes the license is a trademark, of payment of a fee, and control over how the underlying franchises business has operated. Solved . Mode Characteristics Advantages Disadvantages. 4. These contractual methods can be seen in many forms such as international licensing and franchising. Question 4. Terms in this set (7)Study with Quizlet and memorize flashcards containing terms like when it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?, export assistance centers provide hands-on expiring assistance and trade-finance support for ____ and _____ -sized businesses. Licensing, Franchising, and Other Contractual Arrangements Michael Z. Franchising makes up 10% of the U. doc from ADMN 05 at The Islamic University of Gaza. Study Chapter 16 - Licensing, Franchising and other Contractual Strategies flashcards from Tia-Jane Maggs's class online, or in Brainscape's iPhone or Android app. 3. Risk in franchising. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. Correct Answer: Access For Free . Options for CONTRACTS include co-marketing, R&D contracts, turnkey project, strategic supplier/distributor, licensing/franchising. Licensing/franchising also opens the doors. Licensing, Franchising, and Other Contractual Strategies 438 Part 5 Functional Area Excellence 464 16. Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. Strategic alliances can take many different forms, such as joint ventures, licensing agreements, and marketing alliances. Fresh features from the #1 AI-enhanced learning platform. , Contractual alliances include all of the following except: a. Test. Trademark LicensingCompanies which want to establish a retail presence in an overseas market with minimal risk, the licensing and franchising strategy allows another person or business assume the risk on behalf of the company. Contractual Entry Strategies. It reduces risks for both parties. contractor supplies managerial know how. 2. 2 Exporting 7. An Industrial Design is Intended to _____ Question 2. turnkey contracting. C. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. ,. other contractual agreements and equity modes (wholly owned subsidiary or joint venture). Learn. Introduction to International Business Study Guide Exam 3 – Part 1 Chapter 16: Licensing, Franchising and other Contractual Strategies • What does licensing refer to? An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. d. The problems facing franchise companies in international transactions are relatively less formidable than those facing other service sectors. Patent licensing is one of the most expensive licensing. The main reasons companies form strategic alliances are to gain access. Unique Aspects of Contractual Relationships. A strategic alliance is a collaborative agreement between two or more companies to pursue mutually beneficial objectives. Change Message. They typically include the exchange of intangibles and services. BUS. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Licensing and franchising are two international market entry strategies that businesses can use to expand their operations. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. A licensing is an agreement whereby a licensor grants the rights to intangible property (patents, inventions, formulas, processes, designs, copyrights, and trademarks) to another entity (licensee) for a specified period and in return, the licensor receives a royalty/fee from the licensee. It can be classified into three major forms-. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. Hotel firms typically do not make any equity investment in either of these modes, although some firms may combine non-equity arrangements with equity investments (Dunning, 1988). b. Compromises between short-term transactions and long-term solutions. Multiple Choice . While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional. D) franchise contract involves less control and. When a firm allows others toIn Malaysia, franchising and licensing are governed under different laws. Chapter 15: Licensing, Franchising, and Other Contractual Strategies. Advantages:The commercial center does this by familiarizing U. Market entry modes for international businesses. Franchising is an example of a contractual vertical marketing system. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. . Study Resources. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket Press Copyright. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Test. One of the key differences between a franchise and a license is the limitation set out in licensing agreements. Try it free3. Strategy and Organization in the International Firm 316 12. Flashcards. Greenfield Strategy v. The contractual arrangements ( CA ) mode of entry is in most cases a stepping stone to international production. 2. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it. When considering the three basic decisions a firm must make when it decides to enter a foreign market, it must determine the market. 1 Explain contractual entry strategies. On the other hand, international licensing is a foreign market entry mode that presents some. Franchising. licensing vs franchising. The costs of licensing and franchising vary widely depending on many factors. Arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or. True/False . skhaira2118 Terms in this set (26) contractual entry strategies in IB cross-border exchanges in which the relationship between the focal firm & its foreign partner is. Licensing, on the other hand, is a form of private contract between parties and. equity mode of entry into foreign markets limited to a contractual agreement. Learn. a. Since franchisees will assume many of the responsibilities otherwise shouldered by. 99/yearQuiz 15: Licensing, Franchising, and Other Contractual Strategies. late. patent. Flashcards. 3. Ask AI New. is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business: Other mark ups and contributions like finance charges, sale of related products etc. Franchising: Arrangement in which the firm allows u000banother the right to use an entire business system in u000bexchange for fees, royalties or. When it comes to retail entrepreneurship, there are several ways to open a. Match. My. • Licensing, franchising and other contracting These activities are carried out by a wide variety of institutions such as MNEs, small and medium-sized enterprises and financial entities. b. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. 1 International-Expansion Entry Modes. give later entrants a cost advantage over early entrants. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Match. Licensing: Licensing is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor". - Governed by a CONTRACT that provides the focal firm a moderate level of control over the foreign partner - Typically involve exchange of INTANGIBLES (intellectual property) and services - Can be pursued independently or with other foreign market entry strategies, such as FDI and exporting Licensing and franchising both offer advantages for the involved parties: The licensee and franchisee both gain a competitive advantage in the market. In franchising, decision rights encompass the assignment of rights for use of system- and outlet-specific assets in contracts. By entering your email, you agree to receive marketing emails from Shopify. In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. Indirect strategies are indirect/direct exporting, licensing, franchising and contractual agreements (see Table 2). ( Multiple Choice) Question 2. Conclusion. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. Although both franchising and MSCs are non-equity modes, there are important differences between. Learn. View BUS 417 . 15- Licensing, Franchising and other. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. Chapter 16 – Licensing, Franchising, and Other Contractual Strategies I. ,. Therefore, a franchise includes a licence. When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in IB, Intellectual Property, Contractual Entry Strategies and more. Exporting and Foreign Direct Investing are Two Common Types of Contractual. Lisanslama, Franchising ve diğer Sözleşme Stratejileri Learn with flashcards, games, and more — for free. Ctrl+k Search questions by imageRetail franchising is the method of opening a single store under the umbrella of an established name, branding, trademark, and product line. It described the development of Chinese hotel industry at the end. licensing, Strategic alliancesA detailed list of issues pertaining to termination and renewal terms The advantages and disadvantages of franchising are similar to those of licensing. Business format franchising accounts for most of the explosive growth in franchising that has occurred in the past five decades. Solved . It's also easier for the company to extricate itself from the situation if the results aren't favorable. • Describe. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. An industrial design is intended to _____. , licensing and franchising) have lower up-front costs than investment modes do. b. It's also easier for the company to extricate itself from the situation if the results aren't favorable. Key challenges faced by the franchisee is the decreased likelihood of operating an independent business. format franchising — the licensing of a trademark in conjunction with a prescribed business format and method of operation can be dated to the nineteenth century, but did not develop in earnest until the 1950's. )*Licensing, Franchising, and Other Contractual Strategies Licensing An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensationLearn this differences between licensing and franchising and why licensing is not a alternative to franchising. View LICENSING from BUSINESS A M0804455 at Ain Shams University. 3 Describe the advantages and disadvantages of licensing. Several companies get patent their technology and other products that they don’t want anyone else to use without their consent. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other. A) Nickelodeon B) The Walt Disney Company C) Mattel D) Major League Baseball Services Discover Topics Ask a questionVerified Answer for the question: [Solved] To minimize the complexity of franchising, focal firms must ________. final ch 15 man3600. This part concerns the sale of knowledge rather than the sale of goods—licensing, franchising, management contracts and other similar arrangements. ability to preempt rivals and capture demand by establishing a strong brand name. Franchising. Homework Help. trademark. Ideas or works created by firms or individuals, such asintellectual property grants another firm the right to usethat property for a specified period of time in exchangeView Homework Help - Week 12. d. Licensing is an arrangement by which the owner of intellectual property grants another. A franchise is a business model in which a business owner licenses their business to another individual or organization. An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. 3. AFM 333 – Ch 16 Licensing, Franchising, and Other Contractual Strategies. cross-border exchanges in which relationship between focal firm and foreign partner is governed by explicit contract. Many firms build biotech tags,. Our clients are winning for franchising. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. C)It restricts a firm's ability to expand more rapidly abroad. contractor supplies managerial know how. Subway is a company that has spread worldwide through its expansion strategy. Reasons for Licensing:Get Quality Help. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. Chapter 16 Licensing, Franchising, and Other Contractual Strategies Learning Objectives: 1. Licensing and franchising. Key Challenges Faced by the Franchisee is the Decreased Likelihood. Two Types of Contractual Relationships. licensing, don’t forget that they are separate concepts and each of them offers promising prospects. 4 Understand franchising as an entry strategy. Question 1. 2. Study with Quizlet and memorize flashcards containing terms like Inbound licenses, Outbound licensing, Contractual entry strategies in international business and more. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. Test. Licensing as an Entry Strategy a. The organization that gives the access is the licensor. The definition is important because franchises are covered by securities law while licenses are covered by contract law. Disadvantages of franchising to the franchisee. As a rule, licensing strategies inhibit control and produce only moderate returns. The specific definition of the license. IBUS CH 15 Licensing, Franchising, and Other Contractual Strategies. Firstly, licensors can generate additional revenue streams by granting licenses to third parties, enabling them to enter new markets or expand their product offerings without significant investment. 5 Contract Manufacturing 7. Learn this differs between licensing and franchising and why general is not an alternative for franchising.