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