What is the difference between Franchising, Distribution, Licensing and Agency?
Franchising There is no legal definition of franchising but a franchise is a contractual relationship where the franchisor:- • allows a franchisee to use its trade name, marks and brands • exercises continuing control over a franchisee • is obliged to provide training and assistance to a franchisee • requires a franchisee to make an initial and continuing payments to the franchisor Distribution A manufacturer or a supplier of goods appoints an independent third party – the distributor – to market its goods. The independent third party purchases the goods on his own account and trades under his own name as an authorised distributor. His business name will usually have no connection with the name of the supplier of the goods nor will the supplier regulate the way in which the distributor operates his business other than, perhaps, to oblige the distributor to reach minimum turnover levels, to maintain advertising and PR material, to maintain minimum stocks both of goods and spare parts an
