When quality cannot be guaranteed, it is preferable for the products produced under license not to carry the licensor's brand name.

Question

Quizplus · Accepted Answer

When quality cannot be guaranteed, either because the licensee does not allow the licensor sufficient control and scrutiny, or because the licensee cannot guarantee quality, it is preferable for the products produced under license not to carry the licensor's brand name. In this way, the licensor reduces the risk of diluting its brand equity.

When Quality Cannot Be Guaranteed, It Is Preferable for the Products