With Centralized Licensing you designate one of the controllers (Master) to be the "Centralized Licensing Server". All licenses are loaded into the pool on the License server then are handed out to controllers as-needed.
So, if you have 15 APs terminating on the Master it will allocate 15 licenses (AP, PEFNG,RFP) to itself then allocate 5 to your Local controller.
Having said that it is important to note that the 70x0 controllers are not meant to be a Master controller -- they are designated as Branch controllers. So, they are supported as Local controllers and not supported as Master. There is nothing in software that will prevent you from configuring it as a Master -- it is not tested or supported.