How to Add a Contract

Created by Francesco Ilardi, Modified on Mon, 1 May, 2023 at 9:24 PM by Francesco Ilardi

Brainbase allows you to securely store and share all of your license/licensee information and relevant documents.

Before you begin – have you added the licensee you would like to create the contract for? If not, see the instructions here on how to add a company.

How to Add a Contract

Start on the 'Contracts' tab and click 'Add Contract.'

Next, select the contract type. You can add two different types of contracts:

Outbound Contract: Select this option if you're licensing out rights for the properties you own, represent, or are allowed to sub-license.
Inbound Contract: Select this option if you're licensing in rights for the properties as a licensee or agent.

After selecting either Outbound or Inbound Contract, select the contract type template:

Licensing Contract: A licensing contract is between a property owner and a licensee, or a master licensee and a sub-licensee.
Representation Contract: A representation contract is between a property owner and an agent, or a master agent and a sub-agent.
If you've saved any contract templates, they can be selected from here, as well. For more on saving contract templates, click here.

Once you've chosen between a licensing or a representation template, you'll land on the following page, which is where you'll input the details of the contract itself. Use the 'Add...' buttons to the right and refer to the contract terminology outlined below to fill in the pertinent details, which are broken down into three main sections.

Parties: The licensor, licensee, agent (when applicable), and revenue participants. Once each field is filled, click 'Save' at the bottom of the section to proceed.
Contract Terms: Contract name, effective period, territories, distribution channels, royalties, payments, sales reporting requirements. Once added, click 'Save' to proceed.

These contract terms can be bundled together to create a rights set, which can be used across different sections of Brainbase, such as for sales reports and product submissions. For more on rights sets, click here.

Digital Assets: Contract-specific files to be shared between all parties. Once added, click 'Save' to proceed.

Contract Terminology

General Terms:

Add a contract number or select 'Auto Generate.'
Enter license start/end dates.
Choose auto-renewal and/or deduct sales during the sell-off period against the minimum guarantee.
Select the currency type from the drop-down menu.

Categories, Territories, and Distribution Channels:

Choose All... or Selected... by clicking the checkboxes within.

Royalty Rates:

Add a royalty rate by choosing if this 'Applies to all' or 'Applies to selected.'
Choose royalty type: Percentage of Sales, or Flat Fee per Unit Sale
Add Standard, F.O.B, and/or Direct Rate
Add a condition e.g. (If Units sold equals Amount.)
Choose to deduct reported returns from royalties and/or deduct reported discounts from royalties.
Click 'Save' to complete.

Payments:

Select Payment Type: Advance, Guarantee, Flat Fee.
Choose if it applies to all or just the selected.
Add the name, amount, and due date.
Choose Recoupable, Refundable, and/or Installments.
Click 'Save' to complete.

Sales Reporting:

Specify if the licensee will need to report sales for this contract.
Select Compliance Frequency, Marketing Start Date, and Report Due (Days)

Submissions:

Add Review Period (Days)

Notes:

Add any additional notes here.

Once you've saved the data for each of the three main sections above, click 'Add Contract' to finish.