Working together with our client, a Fortune 500 corporate brand owner, we conducted a royalty audit of its licensee, an international toy manufacturer, to ensure the licensee was performing and reporting according to the terms of its license agreement.  Beanstalk determined that the licensee had not complied with certain terms of the license agreement.  We worked closely with the licensee to manage the negotiation of the settlement amount and terms, and executed an audit settlement agreement that benefited both parties involved and helped improve communication between the brand owner and the licensee.   Audits findings included:

• Underreported sales for certain SKUs on royalty reports
• Application of incorrect contractual exchange rate resulting in underpaid royalties
• Delinquent royalty payments
• Sale of products in unlicensed territories

Total Audit Findings: $1.7 million

“Thank you for handling all aspects of reporting and compliance.  It has allowed my team to focus on growing the licensing program and bringing new product to market.” – Testimonial from the Brand Owner

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