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Royalty agreement

template

The investor or licensor receives an ongoing percentage of revenue or a per-unit payment, instead of an equity stake — a common alternative deal structure when either side would rather avoid diluting/taking ownership.

Good fit for

  • +An investor wanting ongoing income without taking an equity stake or board involvement
  • +A business owner wanting to raise money without giving up any ownership percentage

Not ideal for

  • −Investors specifically wanting eventual equity upside — use the equity purchase agreement or convertible note instead

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This document was generated from a template and is provided for informational purposes only. It is not legal advice. Consult a licensed attorney in your jurisdiction before relying on it.