A Presentation on What the Heck Licensing Agreements are

licensing agreement An agreement that grants permission to a company to use a product, service, brand name, or patent in exchange for a fee or royalty The manufacturer pays the owner of the trademark or patent a fee (usually a royalty) Royalty: a percentage of the revenue from the sale of the licensed products Three main types: manufacturing, distribution, franchising

manufacturing agreements Grants permission to a company to create a product under another brand name New licensee is paying for brand identification Kraves Candy Clodhoppers Example

distribution agreements Grants permission to a company to sell product/service in another region/country Product is made with original company, and is sold with company purchasing distribution agreement (the licensee) Exclusive distribution deal: Allows another company to be the only distributer of manufactured product in another country, mainly used for entering foreign markets

franchising agreement Turns the ownership of manufacturing/distribution company over to a local franchisee Franchisee runs the business under the direct control of the head office Head office takes % of franchisers sales rev. in return for use of logo, processes, expertise, design, etc. Ex. Subway Restaurants

That’s it.