A licensing agreement grants a manufacturer the right to develop, market and sell approved products (typically leveraging a company's brand name, logo(s), mark(s) and/or licensable assets) to approved retailers in return for payment — typically a royalty and guarantee based on wholesale sales as specified in the license agreement.
Typically, Licensing royalties represent 10% of wholesale sales (5% of retail sales) and are paid to licensors on a quarterly basis.
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