Brand Licensing Agreement Template

Create a legally-sound brand licensing agreement that protects your intellectual property, defines clear usage rights, and establishes royalty terms. Used by leading brands worldwide.

Brand Licensing Agreement Template

A brand licensing agreement is a crucial legal document that allows one party (the licensor) to grant another party (the licensee) the right to use their intellectual property, including trademarks, logos, and brand assets. This comprehensive template ensures all essential elements are properly addressed to protect both parties' interests.

What This Template Is For

This template is designed for businesses looking to monetize their intellectual property through licensing or those seeking to legally use another company's brand assets. It provides a structured framework for defining usage rights, territories, royalty payments, and quality control measures essential for brand protection.

When To Use This Template

Use this agreement template when:

  • Expanding your brand into new markets or product categories
  • Allowing third parties to manufacture branded products
  • Establishing merchandise licensing programs
  • Creating strategic brand partnerships
  • Licensing your brand for international expansion

How To Customize It

Follow these steps to customize the agreement:

  1. Define the licensed intellectual property clearly, including all relevant trademarks and assets
  2. Specify the territory and duration of the license
  3. Set royalty rates and payment terms
  4. Establish quality control requirements and approval processes
  5. Include specific usage guidelines and restrictions
  6. Add termination conditions and post-termination obligations

Common Use Cases

This template serves various industries and scenarios:

  • Fashion brands licensing their logos for accessories
  • Food and beverage companies expanding through licensed manufacturing
  • Entertainment brands creating licensed merchandise
  • Sports teams licensing official merchandise
  • Technology companies licensing brand assets to partners

Best Practices

Follow these guidelines for effective brand licensing:

  • Conduct thorough due diligence on potential licensees
  • Include detailed quality control provisions
  • Set clear performance benchmarks and minimums
  • Define approval processes for all branded materials
  • Establish regular reporting requirements
  • Include audit rights and compliance measures

Template Variations

Consider these variations based on your needs:

  • Exclusive licensing agreements
  • Non-exclusive licensing agreements
  • Territory-specific agreements
  • Product category-specific licenses
  • Co-branding agreements

Success Stories

Real-world examples of successful brand licensing:

  • A luxury fashion brand expanding into fragrances through licensing
  • A popular restaurant chain licensing its brand for retail products
  • A sports team growing revenue through licensed merchandise

Frequently Asked Questions

What is the difference between exclusive and non-exclusive licensing?

Exclusive licensing grants rights to only one licensee in a specified territory or category, while non-exclusive allows multiple licensees to operate simultaneously.

How are royalty rates typically structured?

Royalty rates usually combine minimum guaranteed payments with percentage-based royalties on sales, often ranging from 5-15% depending on the industry and brand strength.

What quality control measures should be included?

Quality control provisions should cover product specifications, approval processes, inspection rights, and compliance with brand guidelines.

How long should the agreement term be?

Initial terms typically range from 3-5 years, with renewal options based on performance and compliance.

What termination rights should be included?

Include both for-cause and convenience termination rights, with clear processes for wind-down and inventory disposition.