Appendices

11.2

Templates

These outlines give you a starting structure for the four documents beginners need most. Adapt each one to your deal, and check your contract for any required formats; many licensors supply their own templates.

Proposal outline

  • Company overview: history, size, key clients or retailers
  • Title and characters you want to license
  • Product categories, with sketches or mock-ups
  • Territories and sales channels
  • Target customers and price points
  • Sales projections by year
  • Marketing and launch plan
  • Proposed timeline and contact details

Term sheet checklist

  • Property (title, characters, assets)
  • Territory, term, channels, and exclusivity
  • Royalty rate and royalty base
  • MG, advance, and payment schedule
  • Approval process and timelines
  • Reporting frequency and audit rights
  • Sell-off, renewal, and termination
  • Governing law (consult a licensing attorney)

Approval tracker

  • Item name and SKU
  • Stage (concept, pre-production, final sample)
  • Date submitted and date of response
  • Feedback received and changes made
  • Status (approved, revise, rejected)

Royalty report

  • Reporting period and contract number
  • Units sold by SKU, territory, and channel
  • Gross sales, allowed deductions, and royalty base
  • Royalty rate and royalty due
  • MG and advance credited to date
  • Currency, exchange rate, and withholding tax (consult a tax advisor)