Named models that capture revenue by granting another party the right to use a brand, operating format or piece of intellectual property in exchange for a fee or royalty, including franchising an established business format and licensing a brand, patent or technology to a third party. Belongs here: any model whose defining act is granting usage rights over an intangible asset rather than transferring physical goods or providing an underlying service directly. Does not belong here: a company that manufactures goods under a licensor's brand as the licensee, grouped under Production and Fulfillment Models as white-label manufacturing.
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Sources
1. Wikipedia: Franchising
WikipediaFranchising, History sectionQuote, Franchising, History section
There was little growth in franchising, though, until the mid-19th century, when it appeared in the United States for the first time.
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