Legal Question in Business Law in Maryland
Client is asking for me to design a logo and tshirts for them in exchange for a percentage of profit instead of a flat fee, what contractual conditions/concerns should I consider should I choose to pursue this arrangement?
2 Answers from Attorneys
These types of arrangements are fine. I wouldn't accept a percentage of profits, however, but a percentage of the gross. That company could never make a "profit" by manipulating expenses. Discuss this with a business lawyer on a consultation basis.
The arrangement itself may be fine, but you need to make sure the terms are acceptable to you especially since they may never profit. Will they at least pay for costs and materials up front? I would also have the agreement reviewed by a business attorney before I sign it. Best of luck.
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