From the main menu, select Single Player, then License Challenge. You will complete a series of challenges with various requirements. You must complete all round in each test in one sitting. If you fail you will start from round 1 again. You only need to complete the first ten to unlock all three License Challenge Mode achievements.
Test 1 - Striking Contest. 5 rounds. During round 1, 3 and 5 make sure you strike at least 5 times with punches and kicks. Round 2 and 4 you just need to win.
Test 2 - Guarding Test 1. 5 rounds. During round 1 you will need to block 5 times, round 3 you will block 6 times, and in round 5 seven blocks are needed. To block simply hold down Rounds 2 and 4 you just need to win.
Test 3 - Defensive Move Test 1. 5 rounds. You need to win round 1, 3 and 5 without your opponent evading 7 of you strikes. Fight aggressively and this will be simple. These fights are best of 3. Rounds 2 and 4 you just need to win.
Test 4 - Offensive Move Test 1. 5 rounds. In rounds 1, 3 and 5 you will need to win using at least one offensive move. You can do these by either pressing then ++, or ,,. Rounds 2 and 4 you just need to win.
Test 5 - Health Bar Test 1. 3 rounds. You will just need to beat three opponents who have more health than you. Fight aggressively and block if your health starts getting low.
Test 6 - Combo Test 1. 5 rounds. In rounds 1, 3 and 5, you will need to win the fight using at least one 2 hit combo. This shouldn't be much trouble as stringing two punches in a row is child's play. Rounds 2 and 4 you just need to win.
Test 7 - Throwing Test 1. 5 rounds. In rounds 1, 3 and 5, you will need to win the fight using at least one throw move. These are done by pressing + together when close to your opponent. This is easiest with either Wolf or Jeff. Rounds 2 and 4 you just need to win.
Test 8 - Special Rules Test 1. 3 rounds. For these, you have to win where recovery after attacks can be cancelled. This is not really important, just fight aggressively and you will have no problems.
Test 9 - Special Moves Test 1. 5 rounds. In rounds 1, 3 and 5, you will need to win without your opponent performing 5 parries. These are best of three fights, but the AI doesn't attempt parries much so as long as you win you will get through this.
Test 10 - Win Streak Test 1. 6 rounds. For this you just have to win all 6 rounds without defeat. If you find yourself struggling, make use of the block button and use a character you are familiar with.