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Revenue Sharing Contract for the United States

Revenue Sharing Contract Template for United States

A Revenue Sharing Contract is a legally binding agreement under U.S. law that establishes the terms and conditions for sharing revenue generated from specific business activities between two or more parties. The agreement defines what constitutes revenue, specifies the calculation methodology, establishes payment terms, and outlines reporting requirements. It includes provisions for audit rights, dispute resolution, and termination conditions, while ensuring compliance with federal and state revenue recognition and tax laws.

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What is a Revenue Sharing Contract?

Revenue Sharing Contracts are essential tools in modern business arrangements where multiple parties contribute to revenue generation and seek to formalize their sharing arrangement. These contracts, governed by U.S. federal and state laws, are particularly vital in digital economies, joint ventures, and collaborative business models. A Revenue Sharing Contract typically details the revenue definition, calculation methods, payment schedules, audit rights, and reporting requirements. It provides legal protection while ensuring transparency and fairness in revenue distribution, making it particularly valuable for businesses seeking to formalize partnership arrangements or monetize intellectual property.

What sections should be included in a Revenue Sharing Contract?

1. Parties: Identification of all parties involved in the revenue sharing arrangement

2. Background: Context and purpose of the revenue sharing arrangement

3. Definitions: Key terms used throughout the agreement, including definition of 'Revenue'

4. Revenue Sharing Terms: Core terms including calculation method, percentage split, and payment frequency

5. Payment Terms: Details of payment mechanics, timing, and currency

6. Reporting Requirements: Requirements for financial reporting and revenue documentation

7. Audit Rights: Rights and procedures for auditing revenue calculations and payments

8. Confidentiality: Protection of confidential information shared between parties

9. Term and Termination: Duration of agreement and conditions for termination

10. Representations and Warranties: Standard legal assurances from both parties

11. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

What sections are optional to include in a Revenue Sharing Contract?

1. Intellectual Property Rights: IP ownership and licensing terms, used when IP is involved in revenue generation

2. Territory Restrictions: Geographic limitations on revenue sharing arrangement

3. Minimum Performance Requirements: Minimum revenue or performance thresholds and consequences of non-achievement

4. Force Majeure: Provisions for unforeseeable circumstances preventing performance

5. Assignment Rights: Rights and restrictions regarding transfer of agreement obligations

What schedules should be included in a Revenue Sharing Contract?

1. Schedule A - Revenue Calculation Methodology: Detailed methodology for calculating shared revenue

2. Schedule B - Reporting Template: Standard format for revenue reporting

3. Schedule C - Excluded Revenue: List of revenue streams excluded from sharing arrangement

4. Schedule D - Payment Procedures: Detailed procedures for making and receiving payments

5. Schedule E - Audit Procedures: Detailed procedures for conducting revenue audits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses






























Industries

Internal Revenue Code: Federal tax legislation governing the tax implications of revenue sharing arrangements and income reporting requirements

Securities Acts: Securities Act of 1933 and Securities Exchange Act of 1934 - relevant if the revenue sharing arrangement could be classified as a security offering

Uniform Commercial Code: Governing commercial transactions across states, particularly relevant for payment terms and contractual obligations

Anti-Trust Laws: Sherman Act and Clayton Act - ensuring the revenue sharing agreement doesn't violate competition laws or create monopolistic situations

State Contract Laws: State-specific regulations governing contract formation, enforcement, and interpretation

State Business Codes: State-specific business and commerce regulations affecting revenue sharing arrangements

State Revenue Laws: State-specific taxation and revenue regulations that may impact the sharing arrangement

State Securities Regulations: State-specific securities laws (Blue Sky Laws) that may apply to revenue sharing arrangements

Contract Formation Requirements: Legal doctrine covering essential elements of contract formation including offer, acceptance, and consideration

Statute of Frauds: Legal doctrine requiring certain contracts to be in writing to be enforceable

Industry-Specific Regulations: Specialized regulations that may apply depending on the industry (entertainment, healthcare, technology, etc.)

Definition Components: Legal requirements for clearly defining revenue, calculation methods, payment terms, and audit rights in the agreement

Contractual Protections: Essential contract elements including confidentiality, term/termination, dispute resolution, and force majeure provisions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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