Franchising offers the system of proven strategies and action. Licensing is brand associated with their emotional experience. Licensing allow you to design and develop products in line with the brand’s mission.
Take an example, say you have a brand call “Caterpillar”. Your potential partner for licensing is to extend your brand for fashion and baby products. What image you would like to create for your brand. Obviously you do not wish to dilute your brand.
You set the guideline that for licensing of your brand in producing baby products, limited to clothing, toys, accessories but not diapers. Why not diapers, you may ask. You want to relate your brand to things that bring sweet memories. You would like to relate well to children when they grow older. Photos taken of these children remind you of your brand.
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