of the market. 4. It's not about the size or strength of the licensee, it's about the size and strength of their committment to your brand You can grant a licence to the biggest company in the world, but if their commercial departments and teams are barely interested, you will not get good results. And the reality is that for all the importance of the minimum guarantee, the reality is longevity and over recouped royalties are what delivers massive income for some licensors. So make sure they really want to work on your brand. Make sure it will get focus, and make sure they haven't signed for reasons which don't serve your needs, like cutting out competition to other brands, land grabbing rights regardless of intention to use, or interest based on flawed thinking/misunderstanding. For those in corporate companies, you will probably not need any extra process/due dilligence advice, but for those in smaller or less corproate companies, it is 100 per cent essential to credit check and reputation check every single licensee. Credit checks should reveal whether a company is in dire straits, which should increase your chance of getting paid. Reputation checking should help you work out whether a licensee has a reputation for not paying minimum guarantees, or other such shenanigans. Don't know who to ask? You must know someone. Look at licences a particular licensee has signed, and call the brand owner/licensor for at least informal feedback. Be wary of a licensee who doesn't have proven