Licensing and franchising
You can license the right to produce and sell your product, service or intellectual property (IP) to a third party. They will usually pay a licence fee upfront and royalties on each sale.
Franchising involves licensing a well-developed business model to a third party. Fees are paid for the right to:
- use a brand name
- sell a product or service
- use business systems and processes
- get training and equipment
Be selective when choosing a license or franchise partner. You’ll want to be confident that your product, service or IP will be used in the way you intended and that your standards will be maintained.