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blog home Start a Franchise Which Is More Beneficial for Me: Franchisee or Licensee?

When you are considering a new business venture‚ you might be put into a situation where you must decide between buying into a franchise or licensing products from an established company. Either decision will cast you into a new role‚ either as a franchisee or a licensee‚ respectively.

Determining which route is most beneficial to you and your bottom line may depend in part on your personality and your motivation. Most entrepreneurs have a definite drive to succeed. However‚ some do better when they work entirely on their own while others thrive with the support and help of others.

A franchisee receives lots of support‚ training and counseling in running a franchise. Your relationship with the parent company is very close. What really makes that connection stand out is how franchisees usually retain rights to the parent company's logo and trademark.

On the flip side‚ if you are a real go-getter and prefer to take on the world yourself‚ then you may be most satisfied with becoming a licensee. The relationship is much less defined between a licensee and licensing company. Typically the licensee does not hold rights to the company's trademark; rather‚ they must make their own mark and establish their own identity in the business world.

There is a lot more to know about the differences between being a franchisee or a licensee. For more information on franchisees and licensees‚ read “The Difference Between Franchisee and Licensee”. 

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By Charles Internicola June 30, 2010

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