Franchising
The biggest difference is the cost of establishing and operating the business. With a franchise, there is a significant franchise free paid up front and then ongoing royalties
The parent company keeps very tight controls on every aspect of your business but they also provide lot of assistance in the management and marketing of your store.
Licensing
With licensing agreement, you have more freedom in the operation of your business than with a franchising situation, but also more responsibility.
You have freedom to set your own hours, charge what ever the prices you want, co-brand with whatever food you wish, offer whatever side dishes you prefer, set your own employment policies, etc. You must also make sure that your signs and marketing materials meet trademark specifications. That's all there is to it. It is however, your responsibility to know how to manage and market your restaurant business; Licensor provides you with the training necessary for you to produce a quality product but not how to run a business.
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