Licensing Agreements in Franchising

Licensing agreements in franchising are legal arrangements where a franchisee gains the right to use the franchisor's brand, trademarks, products, or business methods. Essentially, the franchisor grants permission to operate under its established brand and systems, usually in exchange for fees or royalties. These agreements define how the franchisee can use the brand, follow standard procedures, and maintain quality standards. Licensing helps expand the brand's reach while allowing the franchisee to benefit from an established business model, creating a partnership that supports growth and consistency across locations.