Business studies - Licensing and Franchising

Which company is an example of licensing ?

• Pepsi

• Lulu

• Carrefour

• KFC

Franchising is similar to licensing, but it is a term used in connection with the ________

• provision of services

• provision of goods

Which is an example of franchising ?

• Subway

• Coca-Cola

• The Walt Disney Company

• Hasbro

Which is an advantage for the franchisee ?

• The franchisee does not own the rights to the franchise logo, slogan, etc.

• The franchisee has to pay the franchise a certain percentage of the profits

• He does not have to spend his own money on machinery and equipment.

• The franchisee has to buy the raw materials and pay the staff with his own money

Which of these is not a disadvantage of licensing ?

• The licensee could ruin the brand name and image

• Licensors can generate passive revenue from royalties

• Licensors lose control over their intellectual property

• The licensors have to depend on the skills and resources of the licensee to generate passive revenue

Which company uses franchising ?

• Starbucks

• Burger King

• Shake Shack

• Warner Bros. Discovery

Which is an example of licensing ?

• Mattel manufacturing Hot Wheels using its own patented technique.

• Mattel allowing a company in Vietnam to manufacture Hot Wheels

• Mattel manufacturing Hot Wheels at their own factory

• Mattel setting up its own shop in Dubai that sells only Hot Wheels

Which company uses licensing ?

• Pizza Hut

• Paramount Global

• 7-Eleven

• KFC

Who is a licensee ?

• The party receiving the intellectual property

• The party providing the intellectual property

In your opinion, which is better for a MNC that deals with designing and manufacturing sports cars ?

• Franchising

• Licensing