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Which Is Better: Franchising or Licensing?

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We are regularly asked what the difference is between franchising and licensing.

The answer is there is a huge amount of difference. Under a licensing model, a company sells licences to other companies – usually smaller ones – to use IP, brand, design or business programmes. Under a licence agreement, the licensing company can determine how its IP is used, but does not control the business of the licensee.

One of the world’s biggest licensing companies is Microsoft which licenses the sale of its products.

Franchising is a very different business model in which a franchisor sells franchises to people keen to become their own bosses, but with the infrastructure – e.g. sales, marketing, training, HR etc. – already in place and provided by the franchisor.

In addition to our own company, SureCare, some of the world’s biggest brands, including McDonalds, Subway and Dunkin Donuts, operate a franchise model.

The franchisor will also ensure that each franchisee operates in its own distinct territory ensuring that franchises do not compete against each other.

One of the key similarities between the licensing and franchising is that you can take advantage of a proven business model, rather than having to create one from scratch.

We are finding more and more people interested in becoming their own bosses are approaching the team here at SureCare HQ to find out about opportunities to become a franchisee.

One of the most appealing aspects for would-be franchisees with SureCare is the diverse nature of our care business, providing multiple revenue streams from babies through to those in the later stages of life.

Whether you are looking at the franchising or licensing route, it is equally important that you do your homework. Research companies in your sector, check their financials, consider their business proposition in depth and get comfortable with the franchisor head office management team who you will depend upon when you decide to take the plunge.

To find out more about franchising and why it could be an exciting business option for you, please contact Vikki Donnachie, SureCare’s Franchise Sales Manager on 01244 321199.