Brand licensing agreement template

Enable businesses to leverage their brand's value and expand into new markets. 

Brand licensing agreements are pivotal for businesses aiming to monetize their intellectual property. But what are brand licensing agreements, who uses them, and how can you draft one? Dive in to discover.

What is a brand licensing agreement?

A brand licensing agreement is a legal contract that allows one company (the licensor) to permit another company (the licensee) to use its brand, logo, or name for a specified period, usually in exchange for a fee or royalty. 

This type of agreement allows brands to expand into new markets or product categories without the need to invest in production or distribution.

These agreements are crucial for businesses looking to leverage the power of their brand without overextending their resources. 

They are commonly used in industries like fashion, entertainment, and consumer goods, where brand recognition can significantly drive sales.

Types of brand licensing agreements

Direct-to-retail licensing

This is where a retailer gets the license to manufacture and sell products using the licensor's brand.

Traditional licensing

 Here, a manufacturer gets the license to produce and distribute products under the brand name.

It's essential to understand the type of licensing agreement you're entering to ensure it aligns with your business goals.

When should you use a brand licensing agreement?

• Expanding product lines. If a company wants to introduce new products under its brand without the production hassle.
• Entering new markets. To reach new geographical areas without setting up a new distribution network.
• Monetizing intellectual property. When a company wants to earn from its brand without additional investment.
• Collaborative branding. When two brands collaborate for a limited-edition product range.
• Franchising. Allowing others to operate a business under your brand name.

Who drafts brand licensing agreements?

Legal teams usually draft these agreements, ensuring that the brand's intellectual property is adequately protected. 

Marketing and business development teams often provide input, ensuring the agreement aligns with the brand's strategic goals.

Key elements in a brand licensing agreement

• Parties involved. Clearly define the licensor and licensee.
  
  
• Licensed properties. Specify what intellectual property is being licensed - logo, brand name, etc.
  
  
• Territory. Define where the licensee can sell the licensed products.
  
  
• Duration. Specify the agreement's length and any renewal terms.
  
  
• Royalty payments. Define the payment terms, including amounts and frequency.
  
  
• Quality control. Set standards to ensure the licensed products maintain brand integrity.
  
  
• Termination clauses. Conditions under which the agreement can be terminated.
  
  
• Legal jurisdiction. Specify which country's laws will govern the agreement.

Challenges with brand licensing agreement

• Maintaining brand integrity. Ensuring the licensee maintains the brand's quality and reputation.
  
  
• Financial disputes. Disagreements over royalty payments or fees.
  
  
• Overexposure.Risk of diluting the brand if it's licensed too broadly.
  
  
• Contractual disputes. Differences in interpreting agreement terms.

Automating brand licensing agreements

Modern businesses are increasingly looking to automate routine contracts like Brand Licensing Agreements. 

Automation can save time, reduce errors, and ensure consistency across all agreements. Platforms like Juro can help businesses draft, negotiate, and manage these agreements seamlessly.

Benefits of automating your brand licensing agreement

1. Consistency. Ensures every agreement uses the latest terms and conditions.

2. Efficiency. Reduces the time taken to draft and finalize agreements.

3. Transparency. Provides a clear audit trail for all changes and negotiations.

4. Centralized Storage. All agreements are stored in one place, making them easy to access and manage.

Can automation enhance how you manage brand licensing agreements?

Juro can streamline the intricacies often associated with brand licensing agreements, alleviating the administrative burden on legal and marketing teams. 

Juro’s contract automation software offers businesses the tools to handle brand licensing agreements more efficiently, thanks to these features:

• Automated agreement templates. Legal and branding teams can create adaptable brand licensing agreement templates in Juro’s user-friendly rich-text editor, making modifications a breeze.
  
  
• Conditional logic. Instead of generating multiple versions for different licensors or products, Juro allows users to automatically incorporate specific conditions into a brand licensing agreement based on the licensor's status or product category.
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• Mass generation. For businesses with multiple licensing partners or products, Juro’s bulk actions empower teams to create, auto-populate, and dispatch brand licensing agreements for signature en masse – an ideal solution for expansive brands.
  
  
• Mobile-responsive eSignature. With Juro’s native eSignature functionality, licensors can promptly sign brand licensing agreements as soon as they review them, even on the go.
  
  
• In-platform commenting. Brand licensing agreements can sometimes be intricate for licensors. Juro’s in-browser contract negotiation tools allow licensors to pose questions and provide feedback directly on the agreement for further clarification.

Improve your brand licensing agreement process with Juro. 

Juro streamlines the entire contract lifecycle, empowering businesses to automate up to 75% of contract administration and finalize brand licensing agreements up to ten times quicker.

If crafting and overseeing brand licensing agreements are challenges for your enterprise, tap the button below to discover if Juro is the solution for you.