Whether you`re negotiating a license agreement, performing a transfer pricing analysis, or evaluating intellectual property, you`ll find the necessary data in the RoyaltyRange database. To start your search, go to the end of this page, where you can order reports on food royalties. A market approach is based on royalties collected under similar licensing agreements between independent parties. This allows you to obtain market prices for comparable intellectual property for a similar transaction. You can use them to determine the royalties of your licensed intellectual property. Exclusivity and territory. The licensee has the exclusive right to manufacture and sell the product in a given territory. Licensor undertakes not to allow anyone to sell the product in that region. This part of the agreement is usually accompanied by a duration. There are a number of ways to determine a fair royalty rate for your food and beverage taxes. The two main approaches are the income approach and the market approach (or transactional approach). Whichever approach you choose, you need access to reliable comparative data to identify the appropriate benchmarks for your food and beverage licensing rights.
If someone has a franchise, there may be a license agreement and there may be several types of licenses within the franchise. For example, a McDonald`s franchise could contain licenses to use the McDonald`s logo on products and packaging, as well as another license to manufacture its patented processes or components. Be careful and you will see food and beverage licensing in other distribution channels as varied as casinos, fashion retailers, toy stores and pharmacies. A Tabasco slot machine, a Jell-O lip balm, Oscar Mayer clothes from designer Paul Frank, a Kool Aid booth – all this brings the food and beverage license not only to new corridors in the grocery store, but also to new retail sites. How could a company with food and beverage brands think about licensing? Perform your due diligence before the agreement. Both parties should conduct a thorough review of the other party. Check trade credits and management resumes. Ask for financial statements. Visit the offices and production sites of the other company. Everything you need. This approach assumes that you have access to ongoing licensing agreements that are sufficiently comparable in terms of intellectual property, market, and circumstances.
You can analyze these agreements to find the middle and interquartile sector of market licensing royalties. Each license agreement is unique and these agreements vary according to their nature (copyright, trademark, patent, etc.). Generally speaking, you will find these sections in most licensing agreements: you can use these benchmarks for food market royalties for your analysis. You can also search the RoyaltyRange database for specific royalties and license agreements you need. Whether it`s creating additional consumer opportunities, expanding into new distribution channels, or giving a strong taste, licensing in this area can be a boost for brands….