When Marvel`s Avengers: Infinity War was released in cinemas, products referring to superheroes appeared everywhere, from Groot-shaped cutting boards to Gauntlet infinity cups. To manufacture this merchandise, Disney authorized the takers to use its intellectual property (the effigy of its superheroes) as part of a licensing agreement. Now we can all have Rocket Racoon on our desks. In the case of franchising, the mode of activity is often described in detail in a franchise manual (for example. B the way the franchisor provides advice and training to the franchisee, and how the franchisee is required to give his or her business its right under the franchise formula). Did you know that if you buy a pair of Calvin Klein underwear, it`s not really made by Calvin Klein? The only clothes that Calvin Klein makes itself are some of its women`s lines. Any other Calvin Klein clothing you buy, including perfume and jeans as well as their famous underwear, are the result of a licensing agreement. The manufacturers of these products have authorized the Calvin Klein name and logo to sell their own products. 3. If the franchise agreement and the franchise formula have been developed and imposed on the franchisee, then the franchisor builds a strong (commercial) brand that in itself represents a certain value. If a licensing agreement is indeed a franchise agreement, the franchise code of conduct applies.

There are different obligations that you must fulfill, even if these obligations are not stipulated in the written contract. Another fundamental difference between the franchise and the licensing is the level of control a franchisor has over the franchisee. When you franchise your brand or business, you keep a huge amount of power. They provide the business model and can define the territory in which a franchisee can operate. When you license a company, you sell the rights to use your company`s products and brands in exchange for a version of the royalties, which are usually an agreed percentage of the licensee`s sale. The licensee reserves the right to own the affected products or intellectual property rights. A licensing agreement is a written contract in which you give another person or company (the licensee) the right to use something.