A technology licensing agreement typically allows your business to quickly enter a foreign market, and it carries less financial and legal risk than owning and operating a foreign manufacturing plant or participating in a foreign joint venture. Licensing also allows U.S. companies to overcome many of the tariff and non-tariff barriers to trade that often impede the export of U.S.-made products. For these reasons, licensing can be a particularly attractive « export » method for small businesses or companies with little experience in international trade, even if small and large enterprises use this technique profitably. Technology licenses can also be used to acquire foreign technology through cross-licensing agreements or return clauses that grant rights to an improved technology developed by a licensee. Seek legal advice to determine licensing liability. Franchising is not the exclusive domain of well-known brands. Every year, many new franchise concepts are transformed into profitable businesses and majorities are created in the United States. Recent franchise concepts that have gone global include personal fitness, flowers and sweets, and elder care. Many franchises are created specifically for entrepreneurs in developing countries and offer relatively affordable royalties and other inputs. .

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