A Guarantee is the minimum Royalty Payment that a Licensee is contractually obligated to pay a Licensor over the term of the agreement. Guarantees may be paid one time, quarterly, semi-annually or annually (custom payment schedules can be created), are nonrefundable and can be credited against future Earned Royalties in the form of an Advance.
RoyaltyZone provides an easy way to enter, monitor, and enforce advances and guarantees. In this tutorial, we will show you how to enter multiple Advances or Guarantees with unique effective periods (non cross-collateralize).
We'll create three unique advances: $10,000 for the first contract year, and $20,000 for the second contract year.
In Guarantee press "New Guarantee"
1. Enter the name of the first term (Example: 2021 Guarantee Year 1).
2. Select the start and end date of the first term (Example: January 1 2022 to December 31 2022).
3. Select if the guarantee will be recouping or not.
4. Select how the guarantee would recoup on invoices or payment.
5. Select if the guarantee will be recouping during Sell-off or not.
6. Enter a description (Optional). The notes will show on the term sheet report.
7. Select if this is a Guarantee or a Sales Quota.
Press "Create"
1. Enter the date for the first payment distribution.
2. Enter the amount for the first payment distribution.
3. Enter a description explaining the payment to the licensee.
Press "Create"
Press "Next"
Select the associations
Press "Save"
First Year entered? Now let's enter Year 2. Press "New Guarantee"
Enter the new dates of the new guarantee.
Enter your payment distribution for year 2 $20,000
Press "Next" and select your associations
You now have your two guarantee for separate Years.
Use the actions icons to edit, delete or clone any entered guarantee.
1. Edit the guarantee name and terms.
2. Edit associations.
3. Edit payment schedule.
4. Clone the guarantee.
5. Delete the guarantee.
Confidentiality Notice
This document may contain information of a confidential, proprietary and/or sensitive nature. This document and the information in it may not be reproduced or disclosed to any unauthorized users without the prior written permission of FilmTrack, Inc (here-to-forth known as ‘The Company’). Any unauthorized reproduction or disclosure of this document or the information contained in it is strictly prohibited. All authorized reproductions (either in whole or in part) shall bear this confidentiality notice.
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