Uberholtz, a German company, has granted Sistec, an American company, the rights to manufacture Uberholtz's products and use the Uberholtz trademark. However, Uberholtz does not have the rights to dictate the business operations of Sistec. Here, Sistec is the _____.
A) franchisee
B) franchisor
C) licensee
D) licensor

Question

Quizplus · Accepted Answer

Sistec is the licensee, as they have been granted the rights to manufacture Uberholtz's products and use the Uberholtz trademark, but Uberholtz does not have control over Sistec's business operations. A franchisee would typically have more direction and control from the franchisor over their operations. A franchisor would be the company granting the rights to use their trademark and business model to a franchisee. A licensor would be the company granting rights to use their intellectual property, such as a patent or copyrighted material.

Uberholtz, a German Company, Has Granted Sistec, an American Company