What context can I use each word in?
Learn when and how to use these words with these examples!
franchising
Example
The fast-food chain has over 100 franchise locations across the country. [franchise: noun]
Example
The franchise agreement specifies the obligations and responsibilities of both parties. [franchise: verb]
licensing
Example
The software company licenses its product to other businesses for a fee. [license: verb]
Example
The licensing agreement specifies the terms and conditions of the license. [license: noun]
Good things to know
Which word is more common?
Franchising is more commonly used than licensing in the business world, particularly in industries such as fast food, retail, and hospitality. Licensing is more common in industries such as technology, entertainment, and publishing.
What’s the difference in the tone of formality between franchising and licensing?
Both franchising and licensing can be used in formal and informal contexts, but franchising is generally associated with a more formal and structured business model, while licensing is often seen as a more flexible and adaptable option.
