Brand & Licensing Tool 39

Licensing
Deal
Economics

Model the P&L of a licensing deal from both licensor and licensee perspective. Includes royalty rate, minimum guarantees, advance recoupment, and total deal value across the license term.

1Licensed Product & Sales

Projected Annual Unit Sales

Wholesale Price ($)

Licensee COGS ($)

2Deal Terms

Royalty Rate (%)

% of net sales

Advance / MG ($)

Minimum guarantee

Term (years)

Sales Growth / yr (%)

Licensor Annual Royalties

Advance Recoup Year

Total Deal Value (licensor)

3Licensee Economics

Licensee Gross Margin (%)

Licensee Net After Royalty

Royalty as % of Licensee GM

Total Licensor Value Over Term - royalties + advance over term

Year-by-Year Royalty Schedule

Year	Units	Net Sales	Royalties

Deal Economics Summary

Advance / Minimum Guarantee -

Royalties (excess of MG) -

Total Licensor Value -

Effective royalty % (all-in) -

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Licensing Deal Economics Calculator