As your business grows there comes a point when you must consider whether or not to invest in more growth or stay as you are. But, those aren’t your only choices. Another option to consider is expansion through franchising or licensing – both are great ways to grow your business. But, how do you know which is right for you?
Last week, on the Business Essentials Webinar Series, our guest speaker Josh Brown clarified the difference between the two.
Simply put, franchising is the use of another’s business model in exchange for payment and/or an ongoing royalty. Licensing is an agreement for someone to use someone else’s intellectual property for payment. While they sound similar, one of the main differences between the two is that franchises have much more control over how the franchise system is overseen – it is by nature a more formal arrangement. Licensing constitutes a more non-exclusive relationship and therefore is a bit more hands-off.
Consider capitalizing on your hard work by providing a business blueprint in the form of a franchise or license. For more information, listen to the webinar in its entirety here.
Josh Brown has an insanely popular podcast that educates people on all the practical aspects of franchising, licensing and more.