Brand Licensing Deals by the Numbers: Royalty Bases, Minimum Guarantees, Advances & Recoupment, Territories and Royalty Audits

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Turn a licensee's gross wholesale sales into the contract's net sales with a deduction cap, look up the royalty rate per product category, total the royalty and compare it with gross sales.
• Compute royalties in each territory's currency, convert them at the contract's fictional FX rates into the licensor's dollars, total the quarter and measure the FX loss when a payment arrives at a worse rate.
• Compare the royalties earned each contract year with the guaranteed minimum, calculate shortfall payments with MAX(0, …), find the total due per year and see why the three years must not be netted.
• Track how quarterly royalties pay back an advance, show the unrecouped balance, find the quarter in which the advance is recouped, split that quarter's royalty and total what the licensor receives.
• Work from retail price to wholesale price, take off unit cost, royalty and the marketing-fund contribution, calculate the licensee's contribution and its margin, and find the highest royalty rate that still meets the licensee's target.
• Build a quarterly royalty statement with SUMPRODUCT, credit the remaining advance, then check a year of payments against the due dates with DAYS and calculate late-payment interest at a fictional contract rate.
• Compare reported and audited net sales, calculate the under-reporting per year and over the period, the extra royalty at each year's rate, and decide with IF whether the licensee also pays the audit.
• Summarise a licensor's royalty income by category with SUMIFS, measure how much depends on the three biggest licensees, turn MG cover into a renewal decision with nested IF and chart the income by category.