Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.
|End Date:||Mar 12, 2019, 3:09 PM MDT|
|Last 12 Months' Royalties:||
|Investment Term:||10 years*|
Studies Weekly, Inc.
Trademark Owner (Worldwide)
April 10, 2019
* Please see the FAQ tab for more information on the 10-year investment term.
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Up for bid is a very unique offering with significant earning potential. This is an opportunity to invest in a portion of the trademark royalty income produced from the sales of the Studies Weekly curriculum used in schools around the country.
Founded in 1984, Studies Weekly, Inc. curates and distributes a K-6, standards-based curriculum featuring a combination of printed weekly units and web-based primary source media. The educational modules distributed focus on state-by-state history, civil rights, science, and social studies (in both English and Spanish).
These education materials are currently used in upwards of 25,000 schools across the United States, through deals with both local and statewide school districts. What’s more, the company is actively pursuing licensing deals with state boards of education.
The most recent state to adopt the curriculum is Tennessee, bringing the total number of statewide deal to eight, joining Alabama, California, Florida, Indiana, Louisiana, Oklahoma, and Texas. These are multi-year deals that differ between states. (Tennessee, for instance, is a 5-year deal, while California is an 8-year deal.)
As the winner of this auction, you will earn royalties from a portion of the net revenues generated by the licensing of the Studies Weekly trademark for all related products. Essentially, whenever Studies Weekly products are sold across the United States, you will earn royalties.
The annual trademark royalties for this asset have remained rather consistent over the last three calendar years — averaging just under $200,000/annually. These royalties also pay on a monthly basis rather than quarterly. This means you won’t have to wait long for your first distribution, scheduled for April 10th, 2019!
Seasonal Earnings. As you can see from the earnings on the “Financials” tab, the bulk of the monthly royalties come between September through November. This is due to the seasonality of school districts ordering products prior to the school year’s start, so monthly revenue during those months tend to spike (and Studies Weekly, Inc. has not started the upcoming year’s marketing campaign yet). As the winning bidder, it’s important to note that you’ll be entitled to all monthly payments going forward for the 10-year term.
Potential Contracts. There is a potential that Studies Weekly, Inc. could secure another district or statewide contract for their educational materials over the next 10 years. The last statewide contract Studies Weekly, Inc. secured resulted in a large increase in the net revenues generated in October and November 2015. You’ll see this increase in the “Financials” tab for 2015 revenue.
Monthly Payments. These trademark royalties are calculated on the net revenues of Studies Weekly curriculum's sales and reported on a monthly basis as paid by Studies Weekly, Inc. This is something noteworthy to prospective investors, as you’ll continue to collect income from this asset each month.
WHAT IS BEING SOLD?
The winning bidder will be entitled to 41.66% of the Seller’s total 2% interest in Studies Weekly, Inc.’s Net Revenues. This equals 0.8332% of the Net Revenues of Studies Weekly, Inc., derived from the exclusive licensing of the “STUDIES WEEKLY” trademark.
Per the trademark licensing agreement, “Net Revenues” means all gross revenues received by Studies Weekly, Inc. for the licensing of the “STUDIES WEEKLY” trademark and related products and services, less (a) all returns and shipping costs, plus (b) all income from The American Adventure Series of books and any other publication that is marketed by Studies Weekly, Inc. without the use of the “STUDIES WEEKLY” trademark.
About the Royalty Distributor
Studies Weekly Inc. is an American educational provider that creates and distributes a combination of printed weekly units and web-based primary source media, and audio readers.
Founded in 1984, Studies Weekly provides teacher-created curriculum in a weekly magazine format to educators. Their formatted magazines feature assessments, word study, writing prompts, reading (modeled, shared, guided, and independent) and much more.