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Getting Ready For The Draft
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Getting Ready For The Draft

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Now that you’ve determined what categories you want to extend into via licensing, you’re ready to draft the licensees. Ideally you should have selected 2-3 prospective licensees to partner with. …

Now that you’ve determined what categories you want to extend into via licensing, you’re ready to draft the licensees. Ideally you should have selected 2-3 prospective licensees to partner with. You’re now ready to assess the program scope from a sales, royalties and product perspective.

Join Pete Canalichio as he takes you through step 5 (Defining the Licensing Opportunity) of the 8-step process. This stage includes a review of sales projections and product concepts from each of the prospective licensees and highlights of areas to watch out for. Throughout this webinar, Pete will be introducing different licensing terms such as royalty rate, minimum guaranteed royalty payments and commercialization date. Understanding these terms is critical to the next stage – negotiating a contract - so you will want to be sure to attend this session.

The fourth of a 6-part webinar series, this webinar will help you understand the licensing opportunity presented by each of your prospects.

To purchase the complete webinar series visit www.BrandLicensingExpert.com


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  • 1. Getting Ready For The Draft
    Pete Canalichio
    Licensing Brands, Inc.
    December 15, 2010
    www.brandlicensingexpert.com
    The following slides are an abridged section from our webinar series
    “How to Build Your Brand Licensing Dynasty”
    To purchase the complete webinar and series with audio visitwww.BrandLicensingExpert.com
  • 2. Agenda
    Defining the Opportunity
    Licensee Application Revisited
    The Conservative Business Estimator
    Common Deal Terms and Definitions
    Product Concept Review
    Rubbermaid Case Study – Sizing Up Candidate Licensees
    Follow Up Activities
    Summarizing the Process
    Confidential
  • 3. Our Brand Licensing Process
    Confidential
    Step 2: Determine How to Win
    Step 3: Prospect Licensees
    Step 1: Identify Where to Play
    Step 6: Negotiate Contract
    Step 5: Define Licensing Opportunity
    Step 4: Perform Due Diligence
    Step 8: Establish Business Plan
    Step 7: Conduct Orientation
    3
  • 4. The Conservative Business Estimator
    Licensees selected after due diligence are asked to fill out the Conservative Business Estimator
    This is a 3-year sales forecast
    By region
    By channel and retailer
    By SKUs
    Annual product introductions
    Sales projections and viability are compared across licensee candidates
    Confidential
  • 5. Deal Terms
    Information from the application and conservative business estimator are used to develop deal terms
    Deal terms ultimately form the basis of the license agreement
    Confidential
  • 6. Common Deal Terms & Definitions
    Trademarks
    The trademarks specified in the agreement that the licensee is allowed to use on the covered products
    Covered Products
    The products specified in the agreement that will be sold by the Licensee that bear the trademarks of the Licensor
    Authorized Channels
    The channels of distribution in which the Covered Products may be sold as set forth in the agreement
    Territory
    The region(s) or country(s) identified in the agreement
    Confidential
  • 7. Common Deal Terms & Definitions
    Term
    The period the agreement shall be in effect with a beginning and ending date
    Exclusivity
    Ensures that the manufacturer will be the only licensee for the licensor’s brands in the category of Covered Products specified in the agreement
    Royalty Rate
    The percentage of Net Sales to be paid by the licensee to the licensor
    Confidential
  • 8. Common Deal Terms & Definitions
    Advance
    The amount of royalty payable by the licensee to the licensor as installments credited against the minimum guarantees
    Minimum Guarantees
    The minimum amount of royalties payable by the licensee to the licensor with respect to the sale and distribution of Licensed Products
    New Product Introductions
    Often required by the licensor on an annual basis to ensure the licensee is sufficiently investing in R&D and the Covered Products sold remain relevant and desirable
    Confidential
  • 9. Common Deal Terms & Definitions
    Sales Performance Requirements
    The minimum sales the licensee must achieve each year of the licensing agreement
    Shipping Date
    The date by which the Licensee must first ship Licensed Products to the retailers for sale by the retailers
    Commercialization Date
    The date by which the licensee must have placement of their Licensed Products in each of the Authorized Channels in their contract
    Confidential
  • 10. Summarizing the Process
    Confidential
  • 11. This has been a snippet from our webinar series “How to Build Your Brand Licensing Dynasty”
    To purchase the complete series with audio visitwww.BrandLicensingExpert.com

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