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Business Expansion: An Overview

Expansion: Five Paths to Business Opportunity:

1. Franchising
2. Distributorships & Dealerships
3. Sales Reps & Agencies
4. Licensing
5. Multi-Level Marketing

The Franchise Relationship
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Expansion: Five Paths to Business Opportunity

4. Licensing

Licensing agreements grant the rights to use a method or technology, equipment, products, services, and the supplies needed to set up and operate a business. It may or may not involve the granting of trade names and trademarks and the training and ongoing support with operating procedures.

The advantages of expanding your business through licensing include:

• You can enter new territories without having to risk large sums of investment capital.
• You can enter into new markets with others that are managerially qualified to produce, market, and distribute your products.
• You can maintain control over how the licensed business operates.

The disadvantages of this method include:

• State regulatory bodies are now viewing what used to be ideal licensing opportunities as franchises, subjecting them to additional regulatory requirements.
• The licensee retains most of the profits, not the company granting the license.

Click here for more information on licensing.