I know on a basic level, there’s brand licensing, where your brand is licensed to others, but as for product designs, and is this different to/from OEM and franchising deals?
Is this something that’s mainly seen in the automotive and food industry, or am I wrong?
In: Economics
OEM is just selling a lot of your product to a party who uses it to manufacture a different product. Generally the manufacturer will get a pretty steep discount.
Brand licensing is when you let someone else make something and put your brands name on it. There are usually minimum quality standards you must adhere to. You see this in auto parts as well as businesses like hotels, where a proprietary owns the hotel but pays to have it be a Knights Inn or something like that. Often if hotels fail to meet quality standards their brand license will be revoked and they will have to downgrade the brand.
Franchising is similar but they sell you a more comprehensive set of business practices with the logo as well as usually require you to source your product from their suppliers. McDonald’s is the most famous example, but some hotels like Marriott also use this model.
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