Artist Investor Agreement Template
If it is a large amount, the investor has the right to demand a higher return of 40 or even 50%. If the investment is smaller, it is also the percentage. The reason is that the artist retains the opportunity to take other investors. For example, if the investment were only $25,000, a fair return would be 10-15%. Third-party funds can be a welcome request for an artist`s career. But the agreement between the investor and the artist must be well written. Both the artist and the investor are well advised to seek informed advice to protect their interests and structure an agreement that is fair to both parties. Most investors are looking for both repayment and profit. As a general rule, this is done as follows: the investor receives a percentage of the funds that the artist earns less from expenses such as registration fees. This percentage or “return” varies from case to case. However, the level of investment is an important factor in calculating a fair return. Whether it is an artist-friendly contract or a pro-investor contract, the agreement should focus on decision-making and authorisation.
A pro-investor agreement would indicate either the specific objective for which the investment can be used. For example, the production costs of a certain number of masters. Or the contract can at least give the investor the right to approve the expenses of his investment. An agreement favourable to the artists would stipulate that the artist can use the money at his discretion. This would give the artist the greatest leeway to decide how to change the money as best as the circumstances of his career. This contract exists between Mr. Joseph Fred, known as “ARTIST,” and John Garner, known as “INVESTOR.” This contract is used to build and develop the artist`s career as a music composer. An artist-friendly agreement may contain a clause stating that the music industry is a highly spectral activity.
As a result, the refund is far from guaranteed. On the other hand, from the investor`s point of view, repayment should be made from all sources of income. This is because investment in one sector supports revenue growth in another.
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