What Is Franchise And Licensing Agreement

At the most basic level, the difference between a franchise and a license is the amount of support you can expect. Other benefits of franchising are the fact that you know what the business looks like when it succeeds, and you can often take advantage of economies of scale in your relationships with sellers and suppliers. As with any other business opportunity, you should do your research before committing to a franchise or license agreement. Both will affect your bottom line, so it`s worth being as informed as possible. Calvin Klein works with a number of manufacturers under licensing agreements. This means that Calvin Klein has licensed or borrowed its brand and trademarks from certain manufacturers, who then use the brand to sell their products. .