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Differences Similarities

Franchising

Licensing

Governed by Securities law

Contract law

Registration Required

Not required

Offered to franchisee
Territorial rights
Support and Provided by franchiser
training
Royalty payments Yes
Logo and trademark retained by
Use of
franchiser and used by
trademark/logo
franchisee
Examples
control

Not offered; licensee can sell


similar licenses and products in
same area
Not provided
Yes
Can be licensed

McDonalds, Subway, 7-11,


Dunkin Donuts

Microsoft Office

Franchiser exercise control over


franchisee.

licensor does not have control


over licensee

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