3 red flags in contracts every creative entrepreneur should look out for
(Because your creative business deserves protection, even when contracts make your eyes glaze over!)
Disclaimer: The following article is provided for informational purposes only, and is not legal advice. If you need specific legal advice, work with an attorney that is licensed to practice in the geography that best suits your needs.
Why creative entrepreneurs need contract awareness
When most people read legal contracts, their eyes instantly glaze over.
I get it. Contracts are not written for the average creative entrepreneur. They're written in legalese.
Luckily, my professional experience and very (VERY) expensive law degree gifted me a certain set of spidey senses that I can tap into, i.e., reading painfully boring contracts with relative ease & pointing out things that seem funky. And so I thought I'd share some of my gifts with you creative business owners who are busy organizing, building systems, and producing amazing work.
So here my Top 3 "Oh No" contract moments:
1. One-Sided Termination Rights
Termination clauses determine what happens when a business relationship ends—a critical consideration for creative project work and ongoing operational support. And these clauses are important because they explain how you’ll get paid if your contract ends abruptly.
What to look for:
Clearly defined contract duration
Fair notice periods before termination
Compensation protection for completed work
Balanced rights for both parties
Possible red flag: An agreement with termination rights that are too one-sided, undefined, or super broad (aka "loosey goosey").'
2. Broad Work Product Clauses That Try to Own Your work
As a creative operations professional, your frameworks, templates, and methodologies are valuable intellectual assets you've developed over time.
What to look for:
Clear distinction between client-specific deliverables and your proprietary tools
Protection of your pre-existing intellectual property
Specific language about what the client actually owns
Possible red flag: A contract stating that "any and all work" produced while working on a client's project belongs exclusively to them. While client-specific deliverables should transfer ownership, your underlying creative frameworks, operational systems, and templates should remain your intellectual property.
For creative entrepreneurs offering organizational systems or event production, protecting your proprietary methodologies is essential for business sustainability.
3. Protect Your Creative Operations Business
While protecting business secrets is legitimate, non-compete clauses should be reasonable and specific.
What to look for:
Clearly defined scope of restrictions
Reasonable geographic limitations
Appropriate time limits
Specific definition of competitive activities
In summary —
Understanding these contract elements helps you:
Negotiate fair terms that recognize your creative value
Maintain ownership of your proprietary systems and methodologies
Ensure sustainable business operations across multiple clients
Protect your income and business relationships
If you need support thinking through the legal operations aspects of your creative business—from drafting appropriate policies to establishing systems that protect your work—I'm here to help.
Need creative operations support with a legal perspective? Set up a discovery call today!