Profit Share Agreement Template

$425.00 inc. GST

The Profit Share Agreement Template assists in governing how profits are shared between your business partnership.

  • Easy to use
    Clear and comprehensive guidance notes.
  • Customisable
    Re-usable template with an editable schedule.
  • Cost-effective
    High quality and cost-effective profit share agreement template.
  • Key risks for profit shareholding covered
    Key commercial risks covered for a profit sharing arrangement.
After recently opening my own company, I purchased a services agreement and other business starter documents from Business Kitz. These documents were all of a very high quality and easy to follow which made the beginning stages of my business very easy to manage. This allowed me to focus on growing my business rather than wasting valuable time on administrative compliance. I feel this is the best business decision I made at the beginning of my new company. I am very thankful for Business Kitz support. Michael Syna
5/5 average rating,
20+ Google Reviews

IMPORTANT NOTICE: While you are purchasing a very comprehensive Australian template, it is important to understand that the purchasing of this template is not considered legal advice. If you require legal advice and support utilising this template, or if you have other questions, you can book a free 15 minute consultation with a team member from our associated law firm Legal Kitz.

Description

Each Business Kitz resource contains comprehensive guidance notes as well as helpful suggestions to assist you with populating the document.

This Profit Sharing Agreement template includes the following sections:

  1. Optional cover letter
  2. Comprehensive Details Schedule
  3. Relationship of parties
  4. Profit share arrangement
  5. Excluded services
  6. Appointment and services
  7. Scope of services
  8. Standard of work
  9. Approval of marketing material
  10. Timeline
  11. Equipment
  12. Fees and expenses
  13. Invoicing
  14. GST
  15. Expenses
  16. Statutory obligations, insurances and registrations
  17. Treatment of conditional information
  18. Use of confidential information
  19. Disclosure of confidential information by the recipient
  20. Return of confidential information
  21. Protection of Principal’s business
  22. Intellectual property
  23. Protection of Principal’s reputation
  24. Indemnity and liability
  25. Restraint of trade
  26. Termination
  27. Delivery upon termination
  28. Notices
  29. Dispute resolution
  30. Entire Agreement
  31. Counterparts
  32. Cost
  33. Jurisdiction
  34. Definitions and interpretations
  35. Execution page

Why does my business need a Profit Sharing Agreement?

A Profit Share Agreement should be used if your business wants to achieve a particular goal, project or product with another and profits are to be shared by the parties. It is essential to be clear what ‘profits’ are.

A Profit Share Agreement is different to a Revenue Share Agreement which involves sharing the revenue, (the total amount of income generated by the sale of goods and services) whereas profit sharing needs to consider removing the costs associated with the particular sales in mind.

A Profit Share Agreement should be utilised when the parties want to share the revenue left over after costs have been removed. Profit sharing can sometimes be difficult unless the profit sharing is clear (ie are you going to agree to direct costs or will it be the profits in the business that show on accounting records). For example, businesses often run costs through their businesses such as the cost of cars and fuel. Do you intend for all of these costs to be considered or are you only going to agree to direct costs?

This Profit Sharing Agreement template allows for the parties to clearly agree to the different types of costs by breaking down the costs (this is simple to follow in the Profit Share Agreement Template – there are descriptions and examples provided):

  • Total costs
  • Direct costs
  • Indirect costs

The costs for the profit sharing arrangement need to be identified and determined to ensure the agreement between the parties is clear and the costs agreed to are considered. Most disputes occur when the types of costs haven’t been considered and disputes are common without well-considered agreements in place.

If the parties want to share revenue (the total cost of sale and goods) (some people in business decide to do this to keep matters simple), then we suggest you purchase our Revenue Share Agreement Template.

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