Yeah, that was it! If I were going to sell the rights to use my brand's name in another country I think I'd have to insist that they maintain the quality of the product so as not to damage my brand.
Bit of both. Hershey owns the license to the Cadbury name in the US, and they use a chocolate formulation that has a slight sour/spoiled/tangy taste. (The idea that they directly add butyric acid is a myth, but something in the process seems to generate it or something similar.)