Brand Licensing Deals by the Numbers: Royalty Bases, Minimum Guarantees, Advances & Recoupment, Territories and Royalty Audits
Understand how licensing deals for characters, brands and designs make money. You will compute royalties on net sales by category and territory, track guaranteed minimums, advances and how they are recouped, check whether the licensee can afford the deal, contribute to marketing funds and size the impact of a royalty audit, with every cell checked as you go.
One-time payment ยท lifetime access ยท lessons, labs, exam and certificate included ยท no subscription.
About this course
This course works through the numbers behind brand and character licensing deals in a spreadsheet. You turn gross wholesale sales into the contract's net sales with a deduction cap and look up royalty rates by category. You convert territory royalties at contract FX rates and measure FX losses on late payments. You calculate minimum guarantee shortfalls year by year, track how an advance is recouped and find the recoupment quarter. You check whether the licensee can afford the rate after the marketing fund, build a quarterly statement with late-payment interest, size a royalty audit with cost shifting and review a licensor's portfolio for renewals. All brands and terms are fictional โ not legal or contract advice.
Lessons
- The Royalty Base: Gross Sales, Allowed Deductions & Net Sales by Category Pro
- Territories & Currencies: Local Sales, Contract FX Rates and Royalties in Dollars Pro
- Minimum Guarantees: Earned Royalties, Shortfall Payments & What Is Due Each Year Pro
- Advances & Recoupment: Cumulative Royalties, Unrecouped Balance and the Recoupment Quarter Pro
- The Licensee's P&L: Wholesale Margin after Royalty, Marketing Fund and the Affordable Rate Pro
- Royalty Statements: Building the Quarterly Statement and Late-Payment Interest Pro
- Royalty Audits: Under-Reported Sales, Extra Royalty and Audit Cost Shifting Pro
- The Licensor's Portfolio: Income by Category, Concentration and Renewal Decisions Pro