Co-branded promotions: what to look out for

A promotional partnership with another organisation can add up to a big win. But what are the legal issues to consider?

Two National Trust chairs signifying co-branded promotions.

Are you thinking of entering into a co-branded promotion?

Sometimes a partnership with another business to promote your goods and services adds up to a big win.  Co-branded promotions can achieve a greater reach than just one, as well as saving on marketing funds.  But even good partnerships can come to an end. This Easter, after thirteen years successful partnership with Cadbury’s, the National Trust egg hunts will be populated by their own-brand chocolate eggs.

In any strong commercial partnership a good fit is key, but equally important is the need to ensure that your brand is bolstered by the collaboration and not diluted.  Is there an equal amount of give and take with respect to the promotion?

Embarking upon any joint promotional activities, you should always ensure that a legal agreement is in place, setting out the details of the commercial relationship.  This enables both brand owners to set out what they will bring to the promotion, the roles, the limitations on the use of each other’s brands and – importantly – an exit route should things turn sour.

If you are thinking of entering into a promotional activity with another business to jointly promote each other’s business, here is our list of the top eight issues to consider:

  1. What will each party bring to the promotion?
  2. What each party will do and provide?
  3. How long will the promotion last?
  4. What agreement will you have allowing use of the other party’s brand?
  5. Will there be referral fees? How will these be reported and paid?
  6. What if things go wrong? How can you exit the partnership?
  7. What are your agreed limits on liability to the other party?
  8. Will there be any sharing of personal data?

If you are thinking about co-branded promotions or partnering with another business to jointly promote your goods or services, do get in touch with our commercial team.  We will be happy to review or draft an agreement to ensure you are properly protected and your brand is kept safe.

This article was written by Clare Veal

Please note the contents contained in this article are for general guidance only and reflection the position at time of posting. Legal advice should be sought before taking action in relation to specific matters.

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