| When considering buying a business
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| | involved.Franchising is a form of
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| franchise, it is important to consider
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| | licensing in which a parent company (the
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| opportunities abroad as well as in the
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| | franchiser) grants another independent
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| domestic market. For this reason, it is
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| | entity (the franchisee) the right to do
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| highly advantageous for the potential
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| | business in a prescribed manner. This
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| franchise buyer to familiarize himself
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| | right can take the form of selling the
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| with the international franchising and
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| | franchisor's products, using its name,
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| licensing market.Franchising and
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| | production and marketing techniques or
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| licensing involve a minimal commitment of
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| | general business approach. One of the
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| resources and effort on the part of the
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| | common forms of franchising involves the
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| international marketer, and are easy ways
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| | franchisor supplying an important
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| of entering the foreign markets. Under
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| | ingredient for the finished product.The
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| international licensing, a firm in one
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| | major forms of franchising are
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| country (the licensor) permits a firm in
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| | manufacturer-retailer systems,
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| another country (the licensee) to use its
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| | manufacturer-wholesaler systems and
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| intellectual property (such as patents,
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| | service firm-retailer systems.
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| trademarks, copyrights, technical
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| | International franchising/licensing
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| know-how and marketing skill).The
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| | agreements have grown very substantially.
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| monetary benefit to the licensor is the
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| | As an entry strategy, franchising and
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| royalty or fees that such a licensee
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| | licensing requires neither capital
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| pays. In many countries, the government
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| | investment nor knowledge and marketing
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| regulates such fees or loyalties. These
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| | strength in foreign markets.Another
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| feeds do not exceed five per cent of the
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| | advantage of franchising is that it may
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| sales in many developing countries. A
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| | be employed as a pre-emptive strategy
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| licensing agreement may also be one of
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| | against competitors by combing the
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| cross licensing, wherein there is a
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| | foreign markets before the competitors is
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| mutual exchange of knowledge and/or
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| | able to enter. In addition, franchising
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| patents. In cross licensing, a cash
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| | has been used by many companies to
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| payment may or may not be
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| | harvest their obsolete products.
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