Question is there is a termination clause for any or no reason and also a clause for cause, it seems to me I could build the business to a good income level and then they could terminate for no reason where I would still receive residuals for whomever signed up while I had the contract but future business would just become house business for the company and they won't have to pay me for the momentum of what I built. Is this just a standard in contracts and I shouldn't be concerned?
A: It's actually about as "nonstandard" as a contract can get. An "at-will" contract is almost always an attempt to avoid the employment laws by pretending to treat an individual as an independent contractor, even though the state and federal government would almost certainly deem the contract an employment contract
However, the residual deal is interesting, assuming that it's generous enough. The trouble with such agreements is that once you are cut off from the parent company, trying to audit the books becomes an exercise in futility. You end up having to sue, the business stalls forever, meanwhile you have no revenue stream, so you're out of pocket for your attorney's fees and you could wait for several years for a judgment that you can collect on. Meanwhile the business, which has had similar dealings with other contractors, files for bankruptcy and you find out that the business has been insolvent forever, and you have no means of recovering your attorney's fees and costs of suit.
I'm really not trying to convince you that this is a bad deal -- I really don't know.
What I do know is that most of the time, these deals are only good when you generating current revenue, and the idea that they are a long-term solution is almost always an illusion.
The only way to know that the parent company is solvent enough to do this deal over the long term, is if they give you a surety bond for your likely profits and recalculate the bond, at least annually. And, if you can get the parent company to do that, then you will be the only person who has ever accomplished that, because it means that the parent must have a lot of cash on hand in order to pay its debts -- and, these types of deals just never have that sort of risk protection.
BotXXXXX XXXXXne, if you do the deal, think of it as a job with no future once something goes wrong -- because that's almost certainly what it will turn out to be.
Hope this helps.