When establishing a profit-sharing arrangement with a freelancer, it's crucial to have a clear contract in place to outline the terms and conditions of the agreement. Below is a template for such a contract:
[Your Company Name]
[Company Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]
[Freelancer Name]
[Freelancer Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
Profit-Sharing Agreement
1. Parties
This Profit-Sharing Agreement (“Agreement”) is entered into between [Your Company Name] (“Company”) and [Freelancer Name] (“Freelancer”) on the date mentioned above.
2. Scope of Work
The Freelancer agrees to perform the following services for the Company: - [Brief description of the services to be provided]
3. Profit Sharing
In consideration for the services rendered by the Freelancer, the Company agrees to share a portion of the profits generated from the work performed. The profit-sharing percentage shall be [insert percentage] of the net profits.
4. Calculation of Net Profits
Net profits shall be calculated by deducting all expenses incurred in the course of performing the services, including but not limited to: - [List of expenses to be deducted, such as operating costs, marketing expenses, etc.]
5. Payment
The Company shall make payment to the Freelancer within [insert timeframe] of the end of each accounting period. Payment shall be made via [insert payment method].
6. Records and Reporting
The Company shall maintain accurate records of all revenues and expenses related to the work performed by the Freelancer. The Freelancer shall have the right to inspect these records upon request.
7. Term and Termination
This Agreement shall commence on the date mentioned above and shall continue until terminated by either party upon [insert notice period] written notice.
8. Confidentiality
The Freelancer agrees to keep all information related to the Company's business, including but not limited to financial records, client lists, and trade secrets, confidential.
9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [insert jurisdiction].
10. Entire Agreement
This Agreement constitutes the entire understanding between the parties concerning the subject matter herein and supersedes all prior agreements, whether written or oral.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
[Your Company Name]
By: _
[Authorized Signatory]
[Freelancer Name]
By: _
[Freelancer Signature]
[Printed Name of Freelancer]