revenue-sharing agreements

A revenue-sharing agreement is a contract where one party agrees to share a portion of the income generated from a specific project or business activity with another party. This arrangement aligns interests, incentivizing all involved to maximize earnings. For example, an artist might share a percentage of sales with a distributor, or a franchisee might pay a percentage of revenue to the franchisor. The terms specify the percentage, time frame, and other conditions, ensuring transparency and mutual benefit. It’s a flexible way to distribute profits, balancing risk and reward among all stakeholders.