Licensing requires a company to provide its technology to another, while franchising involves providing a specialized business model and support strategy.
Licensing obligates a firm to provide technology, while franchising obligates a firm to provide a specialized sales or service strategy. Hence, the correct answer to the student's question is b. technology; a specialized sales or service strategy. In a licensing agreement, a company grants the rights to another company to use its technology, such as a brand, patented technology, or product specifications. In a franchising setup, the franchisor provides the franchisee with a comprehensive business model that includes branding, operational systems, marketing strategies, and ongoing support.