A firm that enters into a contractual agreement with a foreign partner to allow the partner the right to use certain intellectual property for a specified period of time in exchange for royalties or other compensation is known as a franchisor.

Question

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A firm that enters into such an agreement is known as a licensor, not a franchisor. A franchisor grants the right to operate a business under its brand and system, while a licensor grants rights to use intellectual property.

A Firm That Enters into a Contractual Agreement with a Foreign