Licensor example sentences

Under the licensing/franchising system, it is the licensor/ franchiser who sets up the business unit and invests his/her own money in the business.Since no or very little foreign investment is involved, licensor/ franchiser is not a party to the losses, if any, that occur to foreign business.The firm that grants such permission to the other firm is known as licensor and the other firm in the foreign country that acquires such rights to use technology or patents is called the licensee.As such, the licensor/franchiser has to virtually make no investments abroad.Over time, conflicts often develop between the licensor/franchiser and licensee/franchisee over issues such as maintenance of accounts, payment of royalty and non-adherence to norms relating to production of quality products.Such lapses on the part of the licensee/ franchisee can cause severe losses to the licensor/franchiser.As per the terms of the licensing/ franchising agreement, only the parties to the licensing/franchising agreement are legally entitled to make use of the licensor's/ franchiser's copyrights, patents and brand names in foreign countries.Licensor/franchiser is paid by the licensee/franchisee by way of fees fixed in advance as a percentage of production or sales turnover.This royalty or fee keeps accruing to the licensor/franchiser so long as the production and sales keep on taking place in the licensee's/franchisee's business unit.Licensee/franchisee being a local person has greater market knowledge and contacts which can prove quite helpful to the licensor/franchiser in successfully conducting its marketing operations.