Franchising differs from brand licensing primarily in terms of the underlying legal framework. Franchising is governed mostly by the laws of the individual states, whereas brand licenses allow for a federal. approach.
In the U.S., franchising and brand licensing have been established for much longer than in Europe. McDonald’s might be the best–known and most successful brand associated with this business model.
Franchising and licensing in the U.S. now span over 300 categories, including hotels, cafés, fitness centers, dance schools, gyms, entire sports leagues, and many, many more.
The fundamental principle is: You have to allow to your partners to succeed.
Successful licensees drive growth.