Licensing revenue occurs when one company allows another to use its intellectual property (brands, patents, technologies, etc.) in exchange for a fee.
This revenue model is therefore particularly common in industries such as entertainment and technology.
Companies like Disney generate huge revenues by licensing their characters and brands for consumer products, theme parks, and media.
In the technology sector, software companies often license their technologies to italy phone number library other companies, thereby increasing their revenues.
This is an effective way to expand a business and thus increase revenue without the need to directly manage new units.
Franchise revenue is generated through fees paid by franchisees, as well as ongoing royalties on sales.
Brands like McDonald's and Starbucks use the franchise model to expand globally. This allows the parent company to grow quickly, with fewer risks and costs associated with opening new locations.