What this agreement does
An exclusive artist agreement is the deal that sits underneath a signing. It sets out that the artist records exclusively for your label for an agreed term and territory, what the label pays for, who owns the recordings, and how the money coming back is divided.
The version in Fannera is written around the structure most independent labels actually use in 2026: a net profit split rather than a traditional royalty point system, with recording and marketing costs recouped before either side is paid.
When a label uses it
- You are signing an artist for a defined number of releases rather than a single track.
- The label is funding recording, marketing or advances and needs those costs recouped.
- You need clarity on ownership of masters before anything is distributed.
Key clauses explained
Term and option periods
How long the deal runs and whether the label can extend it. Vague or open-ended terms are the single most common source of disputes later on.
Ownership and licence
Whether the label owns the masters outright or licenses them for a period, and what happens to those rights when the term ends.
Recoupment and accounting
Which costs are recoupable, in what order, and how often statements are issued. Fannera's royalty engine mirrors the same waterfall so the paperwork and the accounting agree.
Territory and exclusivity
Where the deal applies and what the artist may still do outside it — features, session work, live performance.
Explanations only — the drafted clauses themselves are inside the app.
Common mistakes
- Signing without ever defining what counts as a recoupable cost.
- Leaving the delivery commitment (how many tracks, by when) undefined.
- Copying a US-style agreement for a UK or EU artist without changing the governing-law and consumer-protection clauses.
- Never issuing statements — the strongest contract in the world will not survive an artist who cannot see their numbers.
Related templates
Feature Artist Agreement
A guest verse or vocal on a release, with split terms.
Included with all plans
Producer Agreement
Engages a producer for a fee plus optional points on the release.
Included with all plans
Writer Split Sheet
Records songwriting shares before anyone registers the work.
Included with all plans