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The licensing contract is only three years, the Bar Maisse is not famous, and the sales is difficult to be estimated, therefore, we suspect if licensing could meet the expectation of rapid growth. The cost of licensing is lower in comparison to joint venture and direct investment, but the royalty is only 5% of gross sales. The growth of CAH might not be significant. Besides, CAH will have no control of operation and reputation if they choose ?§licensing?? option. Joint venture might be an unviable choice of CAH because Bar Maisse may not be willing to launch joint venture with CAH...
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