Which of the following is a similarity between licensing and franchising? Group of answer choices Under both, the produced goods are subject to tariff and nontariff barriers. Both are types of cooperative contracts. Under both, the parent company retains complete control over the quality of the product or service sold by another company. Both require the parent company to invest in production equipment and facilities to produce the product.

Explanation: Cooperative contracts are those in which one company pays another for the right to conduct that business, as well as other intellectual property rights.

The brand license agreement would be based on the regulation of the conditions of assignment of use of the brand, both in the temporal scope (duration of the contract), and in the spatial scope (area and location).

In the franchise agreement: The Franchisor must be the owner of the brand and must assign the use to the franchisee, through this contract another series of commitments are generated: the Franchisor must have a know-how that he has developed after a proven and proven experience and that be substantial, secret and identified, such knowledge must be transmitted to the franchisee in writing and the franchisee must apply them rigorously in their daily activity, on the other hand the Franchisor undertakes to give support and continuous control, throughout the term of the contract, with in order that the franchisee does not distort the aspects that characterize the business and allow the profitability of its franchisee business.