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2% of "operating profits" is zero dollars for all businesses since no startup makes operating profits. In the event they are not acquired and actually IPO 2% of profits for most businesses is still a very small number.

Why even put that in the document? Further, the document leaves so much open to negotiation it is basically guaranteeing if you are successful you will have to go through a lengthy legal proceeding. Its almost as if the attorneys wanted to figure out a way to make more fees later.




"The Shark Tank Entities" get to choose, and in some cases the 2% royalty is superior. There are many companies that come on the show with a lot of revenue (and profit) but the sustainability of the company might be questionable.


I haven't seen the show in a while and forgot about the types of companies that go on there. Even still it is 2% of operating profit which will still be a small number. If it were 2% of Rev that would be hugely different




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