LICENSE TO USE TRADEMARK
SINGLE FOOD PRODUCT
This agreement is made on ____________ (Date), between ______________________, a corporation organized under the laws of the State of ______________________, with headquarters at _________________________________________________ (Address) referred to as licensor, and ____________________________, a corporation organized under the laws of the State of _____________________________, with headquarters at ______________________________________________________________ (Address), referred to as licensee.
1. The licensor is the owner of the trademark used for food products and of all good will associated with it. The licensor has the right to use and license others to use such trademark.
2. The licensor wishes to promote a complete line of food products to be marketed nationally and sold through authorized licensees.
3. The licensee wishes to obtain a license under the terms and conditions of this agreement.
4. The licensor is willing to grant a license under the terms and conditions provided herein.
In consideration of the foregoing and of the mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:
The following terms shall have the following meanings:
Licensor means ___________________________________________ (Company), its successors and assigns.
Licensee means ___________________________________________ (Company), its successors and assigns.
Trademark means __________________________________________, as applied to food products.
Package means an individual carton of the product containing no less than __________ (amount) of the product.
Product means ______________________________________________________.
Contract year means the period beginning _____________ (Date) of each calendar year and ending _____________________ (date).
Subject to the terms and conditions specified in this agreement, licensor hereby grants to licensee to ________________________________ throughout the entire United States and its territories.
The licensee will pay an initial fee of ($________) on execution of this agreement.
The licensee shall pay a royalty of __________ cents for each __________ (Package) of the product sold.
1. An advance royalty of ($_________) shall be paid on execution of this agreement.
2. The licensee shall submit within _________ days after the close of each quarter during the contract year, a report showing the amount of sales by dollar invoice value and by ________________ (Package Sales Volume).
SUPERVISION OF LICENSEE
1. The licensee agrees to provide samples of the product to licensor no less than __________________________ times per month.
2. The licensee shall not, directly or indirectly, license to any other person or firm to use the trademark.
If licensor finds the product to be deficient in quality or packaged in a misleading manner, then the licensor may notify licensee in writing to correct the problems within ____________________ days.
ADVERTISING AND PACKAGING
All advertising and packaging must adhere to the following rules and regulations:_____________________________________________________________
The licensee shall pay _________ percent of its total gross receipts for national advertising and promotion of the products. The licensee further agrees to spend for its own advertising a sum equal to __________ percent .
REDUCTION OF MINIMUM ROYALTY
If any conditions beyond licensee’s control limit sales to less than ________ percent of sales in the preceding year, then the royalty payable shall be reduced to __________ ($_________).
This agreement shall be in effect until _________________ (Date). This agreement may be renewed ________________ (Annually) at the option of licensee. Upon termination of this agreement, the licensee will immediately discontinue use of the trademark.
In witness whereof, the parties have executed this agreement at ___________________ (Location) on _________________ (Date).