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Licensing can involve allowing another company to use a brand's intellectual property, such as trademarks, logos, or technology, in exchange for a fee or royalty. One of the significant disadvantages of this practice is the potential loss of control over brand management.

When a brand licenses its name or products to another party, it cedes a certain degree of control over how the brand is used, marketed, and presented in the marketplace. The licensee may have different standards, practices, or interpretations of the brand's image, which can lead to inconsistencies that might dilute the brand's identity or reputation. As a result, the original brand owner may find it challenging to maintain a cohesive brand message and quality across different markets or product lines.

In summary, while licensing can provide an opportunity for increased revenue and market access, the associated risk of losing control over how the brand is represented and managed is a notable disadvantage.