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| Legal Work or Marketing Concepts? |
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Building up a sales-force may not be justified for individual products or for individual foreign markets. Small quantities or unfamiliar technology may even be an argument against transferring R&D results into full scale production. Limited financial resources may often make licensing or franchising the only viable method of marketing. The concept of creating a chain of franchisees to provide multiple sales-outlets for consumer products is in many cases closely linked to the type of product. Certain products (such as gasoline) require the structure of a franchise system to optimize marketing efforts. |
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| For other products, such as most capital goods, franchising may not even be an option. Often the image and marketing needs of a product will dictate the manner in which it is brought to the public. In any event, the backbone of license and franchise systems are intellectual property rights. Agreements are not simply "legal work" but the basis for proper assets and marketing for franchisors. |
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