Typical Benefits of Becoming a Licensee of a Well-Known Brand Name:
Distribution Fast and efficient active entry and penetration into thousands of retail facilities domestically and, perhaps, throughout the world. Economy of Introduction The cost and uncertainties related to the development of a new trademark are eliminated through an established brand name; the royalty cost of a licensed name is profitably recaptured through incremental sales increases and higher operating efficiency. Utilization of existing personnel as a starting base. Immediate operating results.
Benefits to Licensee’s Existing Activities Success as a licensee will enhance the image and reputation of the licensee’s other product lines. Increased volume permits greater economies in manufacturing and marketing. Establishes value (fair market value) attributable to the Licensing Program. Facilitates financing Creates marketability of the Licensing Program and/or the entire business. Support Services Licensor, or its licensing consultants, offer assistance in merchandising, marketing, consumer research, publicity and new product development.
Typical Incremental Financial Effects of Selling Licensed Products on Licensee’s Normal Operations:
Effects upon Operations