While there are clear advantages, there are also significant risks:
1. Limited Control: The licensee often has limited control over the product, technology, or brand, which can restrict [innovation](href) and adaptation to local market conditions. 2. Revenue Sharing: Dependence on a licensor usually involves paying royalties or a percentage of sales, which can impact profit margins. 3. Renewal Uncertainty: The terms of the licensing agreement might be subject to renewal, leading to uncertainty and potential disruption if the licensor decides not to renew.