Franchising is a variation on licensing as an entry mode into the international market.

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Franchising is a type of licensing where the franchisor grants the franchisee the right to use its business model, brand, and operating system in exchange for payment of a fee or royalty. Franchising is considered a distinct entry mode into the international market, combining aspects of both licensing and direct investment.

Franchising Is a Variation on Licensing as an Entry Mode