We know, on one their products, under a certain criteria, whether wholesale, retail, they will
receive 25% royalty rate.
And they only have two products.
Let's say on the other product they
recieve, on the low end, 10% royalty.
That's an average of 17%.
17% of $3.5M is $595k
You want to go lower?
Let's say the lowest royalty rate is
5%.
The average royalty rate would be 12%
And still bring them $450k
That's not chump change.
They called this a lucrative agreement.
And called for a record year, based on
this one deal.
Throwing out 1%, is baseless and illogical.