1.

State the advantages and disadvantages of licensing and franchising.

Answer»

Advantage of licensing and franchising:

  • There is lesser risk of Government interference on the turnover of business in licensing or franchising, because the business in managed by local persons.

Disadvantage of licensing and franchising:

  • There is danger that the licensee or franchisee may star an identical business, slightly different from the one licensed or franchised.


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