Ease in the expansion of a business and the ability to cover a larger geographical area for the same is one of the biggest perks experienced by a licensor. Through the distribution network, a parent organization can significantly expand its reach, reaching even the most remote locations, with the support of a licensee.
Source: surang / Freepik
Economic Growth
The capital to be invested is lower for a licensed outlet, as a licensee takes up a specific monetary load. At the same time, with more displays and outlets, a parent company's financial status is increased due to increased sales and profits.
Source: Eucalyp / Freepik
Incentives
A licensee has to pay a certain sum of money to a licensor in exchange for the license, which also acts as an added advantage.
