Revenue Share Agreement for the United Kingdom

Revenue Share Agreement Template for United States

A Revenue Share Agreement is a legally binding contract under U.S. law that establishes how revenue generated from a business activity will be divided between two or more parties. The agreement defines what constitutes revenue, specifies the percentage split, outlines payment terms, and establishes reporting requirements. It typically includes provisions for audit rights, dispute resolution, and termination conditions, all while ensuring compliance with federal and state revenue recognition and tax laws.

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What is a Revenue Share Agreement?

Revenue Share Agreements are increasingly common in modern business arrangements, particularly in digital and collaborative economies. These agreements are used when parties wish to align their interests in a venture's success without creating a formal partnership or corporation. A Revenue Share Agreement under U.S. law provides a flexible framework for profit-sharing while maintaining operational independence. It's particularly valuable for startups, digital platforms, and collaborative ventures where traditional equity arrangements might be impractical. The agreement typically addresses revenue definition, calculation methodologies, payment schedules, audit rights, and reporting requirements, while ensuring compliance with both federal and state regulations regarding revenue recognition and taxation.

What sections should be included in a Revenue Share Agreement?

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

2. Background: Context of the agreement and relationship between parties

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

4. Revenue Share Structure: Core terms defining the revenue sharing arrangement, percentages, and calculation methods

5. Payment Terms: Timing, method, and currency of payments

6. Reporting Requirements: Financial reporting obligations and timing

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

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

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

What sections are optional to include in a Revenue Share Agreement?

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

2. Exclusivity Provisions: Terms restricting parties from similar arrangements with others - include when exclusive relationships are required

3. Marketing and Promotion: Terms regarding promotional activities - include when joint marketing efforts are part of the arrangement

4. Confidentiality: Terms regarding protection of confidential information - include when sensitive business information is shared

5. Force Majeure: Provisions for unforeseen circumstances - include when long-term or high-value arrangements are involved

What schedules should be included in a Revenue Share Agreement?

1. Schedule 1 - Revenue Calculation Methodology: Detailed explanation of how revenue is calculated, including formulas and examples

2. Schedule 2 - Payment Schedule: Detailed timeline of payment obligations and payment mechanics

3. Schedule 3 - Reporting Template: Standard format for financial reporting and revenue calculations

4. Schedule 4 - Excluded Revenue Sources: List of revenue streams specifically excluded from the sharing arrangement

5. Schedule 5 - Audit Procedures: Detailed procedures for conducting financial audits and resolving discrepancies

Authors

Alex Denne

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

Jurisdiction

United States

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Industries

Securities Act of 1933: Federal law that regulates securities and requires consideration if the revenue share arrangement could be classified as a security

Securities Exchange Act of 1934: Federal law governing securities trading and market regulations that may apply to revenue share structures

Internal Revenue Code: Federal tax regulations governing the tax implications and treatment of revenue sharing arrangements

Uniform Commercial Code (UCC): Standardized set of business laws regulating commercial transactions across states

Anti-Trust Laws: Including Sherman Act and Clayton Act, these laws prevent anti-competitive business practices and monopolistic behavior

State Contract Laws: Specific state-level regulations governing contract formation, enforcement, and interpretation

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

State Business and Commerce Codes: State-specific regulations governing business operations and commercial transactions

State Revenue and Tax Laws: State-specific tax implications and requirements for revenue sharing arrangements

State Unfair Competition Laws: State-specific regulations preventing unfair business practices and protecting competition

Uniform Partnership Act: Laws governing partnerships, relevant if the revenue share arrangement could be interpreted as creating a partnership

GAAP Compliance: Generally Accepted Accounting Principles that govern financial reporting and accounting standards

Industry-Specific Regulations: Sector-specific laws and regulations that may apply depending on the business industry

Consumer Protection Laws: Federal and state laws protecting consumer rights, if the arrangement affects consumer transactions

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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