2. Licensing and Franchising

Licensing and franchising are two ways businesses expand their reach. Licensing allows a company to let others use its brand, product, or technology for a fee. For example, a toy company may license its characters to manufacturers to create merchandise. Franchising, on the other hand, involves a business (the franchisor) giving rights to others (the franchisees) to open and operate a branch using its brand and business model, often providing support and training in return for fees or a percentage of sales. Both methods enable growth while maintaining brand consistency and quality control.