g Which of the following statements best differentiates between franchising and licensing? A. Licensees must often meet strict guidelines on product quality, day-to-day management duties, and marketing promotions unlike franchisees. B. Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property. C. Licensing gives a company greater control than franchising over the sale of its product in a target market. D. Franchising is common in manufacturing industries while licensing is primarily used in service industries.

B. Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property.

Explanation:

Licensing can be defined as the recognition (permission to practice) given to an individual by a regulatory agency or government for meeting a set of pre-defined requirements and after passing a license examination.

On the other hand, franchising is a business format that involves issuing or granting a license, consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.

Hence, the difference between franchising and licensing is that, franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property and the beneficiary continues with the operation of the business to his or her own preference.

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