Transylvania World’s costs for the licensing of products and services cover the association’s investments in brand development, in financing the activities and association projects, in order to fulfill its mission which directly impacts manufacturers.
Transylvania World is a not-for-profit association, so, virtually all the income returns in the form of consolidation and brand development and in the benefits brought directly to the licensees and Romania as a whole.
Licensing fees are calculated so that they do not constitute a burden on the licensee, but on the contrary, they represent an insignificant amount of the turnover, payable after the sale.
Depending on the types of products and services, the association’s working groups will consult with manufacturers so that the amount of license commission applied to the turnover is fully agreed with the licensees, showing transparently the necessary amount as well as the direction in which the funds obtained through licensing are invested.
As for the steps taken, Transylvania World association is the working group for a category or a product or a service which includes specialists in that particular field. After consulting with other public and private entities, the working group outlines the standard for the product, reconfirms with the manufacturers and issues the final standard. Once issued, together with the producers, we establish the amount of the license fee, usually a commission applied to the turnover. The legal department prepares a licensing agreement, which stipulates the rights and obligations of the producer and brand manager.
The licensing fee amount varies from one product to another, but as a general rule, it can start presumptively from a value of 2% of the turnover, a common worldwide value for such types of licensing.Once the standards are well-defined, they will be published in sections LICENSED PRODUCTS and LICENSED SERVICES and all the full details of the procedures and costs will be published in the sections LICENCE NOW.