"Some companies and individuals have powerful brand names that enable them to leverage their name and talents to other business for a fee. In some case the brand allows a company to avoid all the capital expenditure issues involved in building a brand property or product. Therefore, the brand earns a pure profit from the enterprise.

The drawback of this type of brand extension is the potential dilution from having your brand spread over too many different properties or products. Their is also the risk that a brand suffers losses due to other peoples execution mistakes. It's best to management any property that has a brand name attached to it; therefore controlling for quality."