Is Licensing for you
One reason why many licenses are so successful is because the system creates a certain
synergy. Businesses brought together under one trademark can achieve things not possible
for individual business people. In addition there are many cost saving features, such as
group advertising and buying power.
However, as a potential licensee you must understand that:
- Licenses are not guaranteed to make money. Even if you own a business which is part of the most successful license in the country or the world, your business may lose money, especially in the beginning. This may be due to many reasons.
- A license is a long-term investment. It may take you several years to bring your business to its profit point.
- Licensees cannot under any circumstances deviate from the norm. You will be told exactly how to run your business.
- This license requires a substantial initial investment, for initial licensing, equipment and set up, to ensure the high quality standards of SAE are met. There will also be continuous licensing payments which must be made for as long as you own the business.
