Licensing or FranchisingLICENSINGLicensing is less expensive and can be done quickly. If you are considering expanding your business through franchising, licensing may be an alternative because (1) it is significantly less expensive, and (2) it takes approximately ten to fifteen business days rather than months and months for deductibles. Additionally, no prior audited financial records demonstrating successful performance are required for licensing. Business goals can often be achieved. It is often possible to draft a licensing agreement that achieves the licensor's goals and does not violate various franchise laws. Potential licensees. Existing businesses often purchase a license and add the product or service to that existing business; this allows the licensee to maintain their “livelihood” business while they test the licensing operations and thus reduces the risk associated with acquiring the license. Much less daily work. The day-to-day business operations of a licensor are usually much less work and complex than being a franchisor. If you become a franchisor, you generally must give up operations of your own business and go into the "franchising" business full-time. Avoid complex government regulations. There is little or no government regulation of licensing, and there is significant and complex government regulation of franchising..