Retail License Agreement

Retailing is the sales of goods or services to consumers in an open market. Many companies manufacture products for selling to consumers; a retail license agreement allows a manufacturer to produce products using another company's brand name on goods.

Facts

One popular type of retail license agreement is professional sports organizations and apparel companies. For example, the National Football League (NFL) will enter a retail license agreement for an apparel manufacturer to produce hats, t-shirts, jerseys or other items with team logos.

Purpose

Retail license agreements allow organizations and companies to do what they do best. While the NFL promotes football games and generates buzz about the league to attract fans, they do not have the ability to produce garments. Therefore, the license agreement outsources this function to an apparel company.

Considerations

Many types of retail licenses exist; they allow companies to form a symbiotic relationship and use each other's operations to accomplish a goal. However, simply obtaining a retail license is not a guarantee of success. Organizations must still market goods to generate profits.

References

• Entrepreneur: Licensing
• The Consus Group: Retail License Agreement