1. A Presentation on What the Heck Licensing Agreements are

2. 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

3. 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

4. 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

5. 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

6. That’s it.