The following license criteria should be considered when developing the core terms of the brand extension license.
- Product category margins and trends
- Manufacturer, retailer
- Product category sales, pricing and trends
- Units, dollars
- Price segment shares
- Product category technology and support
- Product differentiation, innovation and life cycles
- Advertising and promotional support
- Barriers to entry
- Prospective licensee considerations
- Manufacturers: product line breadth and market shares
- Desirability factors (strengths, weaknesses)
- Probability factors (licensee needs, interests)
- Brand image and strength
- Concept fit (brand transferability and consumer appeal)
- Competition (brand license options)
- Other considerations
- Distributor and retailer power and influence
- Licensing program objectives and goals
- Licensor special requirements