Licensing VS Franchising

Remarks	Licensing	Franchising
Definition	Under a licensing agreement the licensor, leases the right to use its intellectual property—technology, work methods, patents, copyrights, brand names, or trademarks—to licensee, in return for a fee.	Under a franchising agreement the franchisor, leases the right to use its intellectual property—technology, work methods, patents, copyrights, brand names, or trademarks—to franchisee, in return for a fee
Operate business	Following company rules	By own way
Registration	Inevitable	Not required
Fee	Royalty fee is very high	Royalty fee relatively low
Example	KFC, Subway, Pizza Hut	Pepsi, Coca-Cola, McDowell’s