Revenue-Sharing Agreement

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Revenue-Sharing Agreement
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Revenue-Sharing Agreement

Revenue-Sharing Agreement

A financial contract where parties agree to split generated revenue based on predefined percentages.

$50.14

(3 customer reviews)

Description

A Revenue-Sharing Agreement defines how profits from a business, investment, or project are distributed among parties. Unlike traditional loans, repayment is tied to revenue performance rather than fixed amounts. The contract specifies revenue split percentages, payment frequency, performance metrics, and duration. These agreements are common in joint ventures, franchise businesses, and investor-backed projects. Revenue-sharing contracts align incentives between investors and entrepreneurs while offering flexible repayment terms based on actual earnings. However, both parties must carefully assess revenue projections and risks before entering such agreements.