Guess how many business owners we hear from that want help to prepare a license agreement? Answer – A lot !
Now guess how many business owners have worked out how their licensing arrangements are going to work? Answer – Only a few !
If you are thinking about entering into licence agreements with distributors for your products or services, don’t waste your money paying a lawyer to draft the legal documents straight away. That needs to wait otherwise all you are going to receive is a template agreement that most likely does not address the strategic, financial or operational needs of your business over the next 5 – 10 years .
Before drafting the license agreement, you need to develop a business model and all of the commercial terms, financial arrangements and operational rules and policies that will make the license arrangements work and be profitable for both parties. After this, the license agreement can be prepared so it reflects your needs and approach to dealing with your licensees.
Read on to learn more about the things you need to consider as part of the process to prepare for the license agreement.
Licensing is a cheaper and more flexible distribution model than franchising. To understand the differences, the options and the best way to go about creating your licensed business and license agreements, speak to one of Australia’s leading licensing and franchising experts, Robert Graham, on 0407 105613.