Collaboration Model

Form

Collaborators sign a collaboration agreement with the apparel company behind the brand. This is not an employment relationship. Collaborators invest skill and time into the brand in exchange for a fixed percentage of net profit.

Profit-Sharing Ratio

Determined by the founder based on role criticality, expected investment, and market reference. Confirmed with the collaborator before signing.

Reference range: core full-time participation 8-10%, phase-based participation 2-5%. Total cap 30-40%. Remainder goes to the company.

Profit-Sharing Base

Brand net profit. Revenue minus all costs, taxes, and reserved operating funds.

Profit-Sharing Cycle

Quarterly or annually. Specified in the agreement.

Performance Conditions

The agreement specifies concrete results and deadlines.

Concrete results mean verifiable deliverables. Example: deliver a complete VI manual by a certain date, including logo specifications, color system, font specifications, and no fewer than 20 application examples.

Failure to meet agreed results is handled per the exit page settlement terms.

Duration

During participation, profit-sharing follows the agreed ratio. After exit, if output is still in use, sharing rights decrease annually. Example: first year maintained, second year halved, third year zero. If output is replaced or no longer used, it terminates early. Specific reduction rules are specified in the agreement.

Tax

Profit-sharing is taxed as labor compensation or business income for individual income tax purposes.