Spring 2012 issue of Horizons

Hospitality & Gaming

The Best of BothWorlds: Maximizing the Benefits of Licensing Relationships While Managing Risk

capital investments for expansion, while still trying to identify areas of excess costs not integral to the overall value of the organization’s brand. Other variables worth mentioning include the lack of credit currently available to organizations for potential expansion, as well as increasing labor and raw material costs. These challenges exist for all organizations, regardless of size or industry. A relatively cost-effective method of expansion is through licensing. Licensing, also known as franchising, is a contract between parties: the owner of the licensed property, known as the licensor, and a licensee. The licensing agreement grants the licensee permission to use the property subject to specific

Revenue and net income growth have become increasingly difficult for organizations to attain in today’s economic environment. In many cases, organizations are aligning resources on two fronts in an effort to achieve top and bottom line growth. Efforts include: • Expansion – including products, service offerings and geographical locations • Restructuring of workforce and capital assets for improved, cost-efficient operations One can quickly ascertain that the two strategic directions are somewhat paradoxical. On one hand, an organization must consider making significant

Raise Your Expectations

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