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.
RECITALS
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:
PART
I.
DEFINITIONS
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).
PART
II.
INTEREST
GRANTED
Subject
to the terms and conditions specified in this agreement, licensor hereby grants
to licensee to ________________________________ throughout the entire United States and its territories.
PART
III.
INITIAL
FEE
The
licensee will pay an initial fee of
($________) on execution of this agreement.
PART
IV.
ROYALTIES
The
licensee shall pay a royalty of __________ cents for each __________ (Package)
of the product sold.
1.
An advance royalty of ($_________)
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).
PART
V.
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.
PART
VI.
DEFICIENCIES
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.
PART
VII.
ADVERTISING
AND PACKAGING
All
advertising and packaging must adhere to the following rules and
regulations:_____________________________________________________________
PART
VIII.
ADVERTISING
EXPENDITURES
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 .
PART
IX.
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 __________
($_________).
PART
X.
TERMINATION
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).
_____________________________ _____________________
Signature
Date
_____________________________ _____________________
Signature
Date
