Before jumping on the description of this type of agreement, one should have a know-how of this term as well. Co-branding as the name suggests, is a procedure whereby more than one brand collaborate their marketing efforts to promote both brands consecutively. Co-branding has gained huge steam in the business arena owing to its usefulness. It is one of the marketing tools that are widely used by different brands. Co-branding attracts customers from another brand and ultimately widens the customer base of both of the brands involved in the agreement. Although this kind of arrangement generates higher revenues for both of the brands but a written agreement is must. Written agreement defines the nature of relationship between both companies. Numerous templates are available online that can be easily accessed. Such templates contain standard terms and conditions which have the option to be customized in a way appropriate to the business requirements.
Several examples of co-branding exist in the market where two recognized brands collaborate their efforts and collectively promote their activities. Two brands operate under one name and hence the large fan base of one brand also comes to know about the other brand. This increases the customers of the other brand too. The advertising expenses and costs can be shared between both of the parties and revenues generated by the joint venture are also divided equitably. Such scheme has taken toll recently due to its prevalence. Many of the successful ventures operate throughout the world and increasing their revenues at a high pace. But some unsuccessful ventures can also be seen around the globe. Some of the standard clauses that are made a part of this agreement are as below.
- First of all, all of the terms included in the agreement are defined in a language that has only one possible interpretation. This reduces the risk of confusion later on.
- Then in the other clause, both parties agree to promote the products and services of each other in a manner that is agreed. Provider agrees with owner to take active steps to promote the products that owner offers on its site. All the customers of provider will be directed to the site of owner for specifies products or services.
- Linking services that are agreed to be provided will be described in this clause. Provider agrees to display the owner’s trade name or any other graphical image provided by him on its website. The details regarding the size of the image and its content will also be shared in this clause. Provider also agrees to enter the URL given by the owner on its website.
- Similarly, owner also agrees to share the icon of provider in the HTML files of co-branded site in the manner desired by the provider.
- Also both parties agree to cooperate in delivering the required materials to each other within stipulated time period.
- Both provider and owner grant each other licenses to use each other’s icons and other tradenames on their respective websites. And the term of this license is decided in the agreement.
- Both parties are also obliged to positively promote, develop and maintain the co-branded site and provider’s site.
- Fees and payments are decided in entered in the agreement.
- Warranties and disclaimers are also made a part of this agreement in this clause.
Here is preview of a Free Sample Co-Branding Agreement Template created using MS Word,