Partnerships build up most companies and businesses. In this set-up, an agreement is needed to determine how to distribute the income and losses of the company. The agreement makes sure of fair shares for each of the shareholders’ contribution to the growth of the business. This article provides revenue-sharing agreement templates and sample documents that can help you in agreeing for your organization.
9+ Revenue Sharing Agreement Templates
1. Restaurant Profit Sharing Agreement Template
You can choose to have an active or passive partner for your business. In the restaurant industry, silent partners or investors are encouraged. The compensation of each should be regardless of their status. This agreement template makes sure that the conditions of your partnership are legally binding. Grab a copy of this document now.
2. Profit-Sharing Plan for Self-Employed Individual Template
With the surge of skill-based and online jobs, many individuals are their bosses. They work according to their own time and convenience. The use of a profit-sharing plan is to dedicate a portion of their income to their retirement plans. If you classify as one, start thinking about your future and download this plan now.
3. Profit-Sharing Plan Template
Revenue sharing agreements are bound to change over time, depending on the run of the business and possible change of management. These changes are accounted for and acknowledged on the first page of this 11-page legal document. You can easily customize and tailor-fit its contents through Google Docs, MS Word, or MAC Apple Pages.
5 Steps in Creating a Revenue Sharing Agreement
Step 1: Identify the Roles
It is crucial to identify which party occupies a specific role in an agreement. In the case of a contract-agreement, it is vital to label each party correctly as who will be the “Company” and who will be the “Party” or “Parties” in case of multiple partnerships.
Step 2: Set the Parameters
After setting the roles to each party, it is time to decide on the limits of the agreement. These are the whereas statements that start the whole document. The purpose, terms, and uses of the agreement are in a detailed and orderly manner.
Step 3: List Down Roles and Responsibilities
The key to the success of any agreement is the cooperation of both parties. All sides should also know what to expect from one another. A specific list of each one’s roles and responsibilities toward the business is essential not to leave anyone in the dark. Furthermore, having a list authorizes each party to demand accountability in cases of shortcomings.
Step 4: Relate to Applicable Law
For an agreement to be legally binding and acceptable in your state, it should be under a constitutional and recognized law. You can ask for legal advice from your company lawyer or hire a private attorney to make sure that you will produce a legitimate business contract.
Step 5: Discuss Agreement
Once all the details are in place, discuss all the statements, and stipulation with your partners. This discussion will bring up new arrangements and revisions which seem to be unfavorable for some. It is best to have this conversation with a lawyer as a mediator so that there is someone who can immediately provide feedback and ratify the contract.
4. Restaurant Profit Sharing Plan Template
Profit-sharing is also a form of incentive for your most valuable employees. Some business is co-owned by their employees, and they share all the earnings and losses. The profit-sharing, as an incentive, heightens the motivation of the workers to perform better because it is their own. This agreement makes sure that no one will be a victim of unfair compensation.
5. Consulting Agreement with Sharing of Software Revenues Template
Sometimes companies seek the business of professional consultants to draft a technical agreement for the betterment of the organization. But before the consultant-client relationship begins, the role of the consultant should be indicated and stipulated in a contract. The contracts example makes each party accountable. Download and print this document in any compatible device now.
6. Profit-Sharing Plan for Self-Employed Individual Template
How lives pan out in the future largely rely on what a person achieves early in life. That is why it is crucial to set a retirement plan early on to enjoy a prosperous future. This plan for self-employed individuals lays out a general plan on how much to set aside. This legal document is fully customizable in various file formats.
7. Restaurant Profit Sharing Plan Template
It is vital to take note that the money shared in a revenue agreement is not constant. It varies according to the income of the business for a particular period. So, in this scenario, only the percentage is fixed and decided on the onset. This Restaurant Profit Sharing Plan Template is the perfect tool in coming up with your business agreement.
8. Revenue Sharing Agreement Doc
If you want a full-blown revenue-sharing agreement sample to serve as reference material, you can use and base on this document. If you have little to no idea about favorable stipulations, you can bank on this document as your draft a legal agreement for your business partners.
9. Revenue Sharing Agreement Sample
In an agreement, the recitals come before the actual body of the contract. The recitals are the whereas statements that set the grounds and parameters of the agreement. If you want a reference of these statements for a revenue-sharing agreement, this serves as an excellent guide.
10. Revenue Sharing Agreement SEC
The U.S. Securities and Exchange Commission is an independent department responsible for protecting investors and for keeping a safe and trustworthy market. The said agency formulates this sample revenue sharing document. If you want to use a material that is top-notch quality, this is the perfect tool for you.
The revenue sharing concept does not follow a rigid structure. The projected progress of the company largely influences the decision about the partition. The decision then lies in the hands of the partners. With the help of the small business agreement templates that are available online, you can make the right agreement you need for your business.
By using the agreement sample templates that are mentioned in this article, you can save plenty of time and effort as you do not have to create agreements from scratch fro your company. All you would have to do is download the template you like best and the one that suits your requirements, add your details, change the fonts if needed and voila, you have the agreement you have been in search of. You can also download the agreements in the file format you feel suits you best and you can also download them on any electronic device, as they are not just limited to a computer or a PC. Try them out now!
1. What is a Revenue Sharing Agreement?
A revenue-sharing agreement is a document that is signed by all the partners of a company. This agreement describes the guidelines to be followed when dealing with business profits and losses. The agreement can be made as a part of the main partnership agreement.
2. When is a Revenue Sharing Agreement used?
A revenue-sharing agreement is used when a joint venture is shared between two or more parties. It helps in developing a project when the parties enter into a joint venture. It helps in the distribution of revenues which is the total amine of income that is generated by the sale of goods/services.
3. What are the benefits of a Revenue Sharing Agreement?
The benefit of a revenue-sharing agreement is that its composition allows the people involved to focus on the success of the projects. The goals of management and stockholders are aligned towards making sustainable revenue. This increases the success rate of the company in the market, giving it more leverage to get new clients.
4. What is the difference between Revenue Sharing and Profit Sharing?
Revenue sharing is the distribution of the total amount of income that comes into the company by the sale of goods/services between the shareholders and the company. Profit-sharing is where only the profits of the company are shared, which is the income that is left after all the costs have been excluded.
5. What should be included in a Revenue Sharing Agreement?
The following details must be included in a revenue-sharing agreement:
- Details of the parties involved
- The sale details
- The share for each party after the sale
- Specific conditions as to who gets how much
- The difference allotment of shares during the first, surplus and shortfall of revenues, if any.