A licensing agreement is a contract between two parties that grants the licensee the right to produce and sell a product using the brand name owned by the licensor (Pride, Hughes & Kapoor 2015, p. 81). There are a number of points to consider before licensing to another company. Firstly, Gaeter’s is a successful family business that takes pride in its brand of ice cream and credits the long lasting success of the business to product quality. Additionally, the process to manufacture Graeter’s ice cream employs a particular method of production known as French Pot and is unique to the company.
Although licensing provides a relatively low cost method for expanding into a foreign market, there are risks involved. For instance, providing a license
Although licensing provides a relatively low cost method for expanding into a foreign market, there are risks involved. For instance, providing a license