Aussie Apparel, Inc. announced that it has signed Frontier International Holdings (FIH) of Australia, as an exclusive licensee covering Australia, New Zealand, Fiji, New Caledonia and the Pacific Islands.
Rod Williams, Senior Vice President of International of Aussie Apparel, said, “We are pleased to sign FIH as our first licensee partner in the Australian/New Zealand region. FIH’s license covers all three Aussie Apparel brands which include Hot Tuna, Xisle and Piranha. All of these brands have their roots and were originated in the Australian territories and as a result, the brand awareness in the region for all three brands is extremely high. This bodes well for FIH’s success going forward.”
The license agreement with Frontier International Holdings is for a minimum of ten years, with an option to extend for an additional ten years. Both parties have agreed to minimum sales and royalties, which have been set for the first five years. According to the agreement, minimum sales from 2003 through 2007 will be AUS$53.8 million resulting in minimum royalty payments to Aussie Apparel of AUS$3.23 million over the next five years. The AUS$3.23 will be paid out in the following manner; $78,000 in 2003, $330,000 in 2004, $570,000 in 2005, $930,000 in 2006 and $1,320,000 in 2007.
Peter Smith, an avid surfer in his own right, leads FIH, based out of Melbourne. Mr. Smith, President of FIH, worked with the Hot Tuna brand prior to the brand’s acquisition by Aussie Apparel from the Federation Group.
