In the fast-paced world of consumer products, retail, and food & beverage industries, ensuring accurate royalty reporting and compliance is crucial. Connor's innovative, tier-based approach, backed by global expertise, offers optimal compliance, cost-efficiency, and unparalleled support. This in-depth exploration highlights how our strategy caters to different licensee tiers - from top to low-tier - ensuring accuracy and building trust across the board.

Understanding the Importance of Tier-Based Royalty Audits

Royalty audits, integral to licensing agreements, involve rigorous examination of sales records and financial documents. Connor's approach recognizes that different tiers of licensees require distinct strategies. With a staggering 85% of licensees reporting errors, our tier-based approach ensures precision and superior ROI for licensors.

Building Trust Across All Tiers

Trust is vital in all business relationships, and royalty audits play a key role in fostering this trust. Connor's approach involves more than financial oversight; it's about establishing open communication, transparency, and fairness at each tier, often facilitated by third-party auditors.

Connor's Expert, Tier-Based Approach to Royalty Audits

Category 1 – Top Customers

• Full Scope Audits: Conducted every three years for the top 5% to 10% of licensees.
• Customized Strategies: Co-developed compliance strategies, scope, and playbooks based on licensee size, location, and markets.

Category 2 – Mid-Tier

• Risk-Based Audits: The majority of our engagements focus on this level, adopting a tailored approach to each mid-tier customer.
• Targeting: Connor supports initiatives to maximize program ROI, focusing on mid-tier customers who present varying levels of risk.

Category 3 – Low/Non-Reporter

• Limited Scope Engagements and Desk Audits: For those at the lower end or non-reporting, we employ more streamlined audit processes.
• Revenue + Governance: This level focuses on generating revenue, creating market awareness, maintaining an equal playing field, and educating licensees.

Utilizing a Variety of Compliance Tools

Our compliance program leverages multiple tools, including:

• Full Scope Audits: Essential for our top-tier licensees, these provide deep insights into compliance and IP management.
• Limited Scope and Desk Audits: Targeted and efficient for our lower tiers, focusing on high-risk areas and streamlined processes.
• Educational Reviews and Remote Audits: Early audits for new licensees and flexible, cost-effective audits for those without elevated risk factors.
• Data Analytics: Utilizing data to identify potential errors and determine the most effective audit approach for each tier.

Connor's tier-based approach to royalty audits in the consumer products, retail, and food & beverage industries ensures financial accuracy and builds trust across all licensee levels. Our customized strategies, targeting initiatives, and focus on revenue and governance cater to the unique needs of each tier, from top-tier to low-tier licensees. To learn more about how we can assist in optimizing your royalty compliance program, contact us.