Apply Learning Module # 2 Unit # 2

1. What are differences between franchising and licensing?...Luisa

Franchising
● The franchisee uses the franchising organization’s name to identify itself.
● The franchisee receives training, marketing and other forms of business support from
the franchising organization on an ongoing basis.
● The franchisee will usually offer only the products and services authorized by the
franchising organization.

Licensing
● The licensee usually does not identify itself using the licensing organization’s name.
● The licensing organization will often not provide business support to the licensee and
will only provide training as agreed in the initial contract.
● The licensee might deal with a range of products and services in addition to the
licensed ones.

2. A French cosmetics and bath product company is beginning to license its products in
areas of Asia. What are four things it should do to prepare for this new venture?...Luisa

Organizations should perform a commercial risk analysis on all potential licensees. This will
help to determine their:

● Financial situation
● Reputation in the local and international marketplace
● Business history
● Quality of management

3. An American pizza company is seeking out new franchisees in the Netherlands. What are
two selection criteria it might identify for the new franchisees? M.D

Firstly, An American pizza organization can search out the new franchisees with deciding
and organize its determination models dependent on its item or administration in the
Netherlands. To begin with, they might distinguish for the new franchisees that it has enough
budgetary assets and experience to satisfy its commitments. At that point, the new
franchisee has the capacity and ability to contribute time and vitality into another endeavor.
It is critical to exhibit the new franchisee through past conduct and the capacity to resolve to
long haul techniques.
Secondly, they can examine the potential Franchisees cautiously to guarantee an effective
endeavor for all gatherings. An American pizza organization ought to play out a business
hazard examination on all potential franchisees/licensees. This will assist with deciding their
monetary circumstance, business history, notoriety in the nearby and worldwide commercial
center, and nature of the executives. Likewise, it is fundamental to guarantee potential
franchisees don't have any current business connections that could make an irreconcilable
circumstance.
Extended Learning

1. Using your own organization, or an organization of your choosing, identify a franchising or

licensing opportunity and a foreign target market. Develop a visually appealing and
culturally-appropriate franchisee/ licensee package that includes branding, the delivery
system and the support/training to be provided. Mandeep