Negotiating a Contract

Don’t ask for money too early on.

Start with the big picture.

1. Terms sheet- 1 page document that states the business terms of your relationship. big picture elements of deal. a. length of contract- 1 year renewable, etc. b.exclusivity c.territory- worldwide, sell in U.S. or U.S. and Canada, or certain states c. royalty rate- whole sale price x units sold x percent = income stream. d. minimum guarantees -25 percent of royalty rate.
2. Contract- Spell out what happens when things go wrong. Get a licensing attorney