CLC

I applied for a license from CLC in order to produce sorority apparel. CLC did not notify me in advance what the fees were or the fact that they would not refund the application fee. They have a requirement to prepay royalty fees however they do not provide enough information in advance so that the licensee can determine if they want to apply or not. In addition, there is no mention that they will pay the licensee interest on the money that is being in advance of any sales being made.

I feel that their practices are deceptive. All of the applicable fees, royalty fees and contract terms should be disclosed upfront. They refuse to refund my application fee at this point. If I had known in advance that there was a prepayment requirement and the amount I would not have applied for the license to start with.

In addition, they are asking that I prepay an entire year of fees even though the contract term is only for 4 months. Then there will be another payment due in 4 months for a partial amount. I have no way of knowing how they calculated the royalty fee of $705 when no sales have been made and I have no idea how much I will even sell. I may be in a position of constantly having to pay them royalty fees in advance even if sales are poor.

To be fair to the licensee, all terms, fees and the fact that the application fee is non refundable needs to be disclosed up front to the licensee so that they have an opportunity to make an informed decision. Also, they should be required to pay interest on the money they are holding in advance.
Product_Or_Service: Zeta Phi Beta license