Audit Rights
In plain English
Audit rights give you the legal right to inspect the brand's books to make sure they paid you what you're actually owed.
Full definition
An audit-rights clause gives one party the right to inspect the other party's books and records to verify amounts owed under the contract. For athletes with royalty, revenue-share, or per-unit deals, audit rights are the only practical mechanism for catching underpayment. The clause should specify: the scope (which records, which years), the frequency (usually once per year, no more often), the notice period (typically 15–30 days), who pays for the audit (the requesting party, unless the audit finds a meaningful discrepancy — typically 5% or more — in which case the audited party reimburses), and the confidentiality of audit findings. Without audit rights, a royalty clause is honor-system. Athletes and agents managing royalty deals should treat audit rights as non-negotiable.
What it looks like in a contract
Once per calendar year and upon thirty (30) days' prior written notice, Athlete (or Athlete's designated representative) shall have the right, during regular business hours, to inspect and audit Company's books and records related to the calculation of royalties payable under this Agreement; if any such audit reveals an underpayment of more than five percent (5%), Company shall reimburse Athlete for the cost of the audit.
Synthesised from common contract patterns. Not lifted from any specific real contract.
How RevU helps
RevU's NIL contract analyzer detects audit rights provisions automatically — flagging the exact triggering language, scoring athlete-vs-brand friendliness, and surfacing negotiation leverage where it exists. See Royalty deal management in RevU for the full product context.
Check your contract freeRelated terms
Royalty
A royalty is a percentage of sales paid to you on each unit sold of a product tied to your NIL.
Survival
Survival is the rule that lists which contract provisions stay in effect even after the deal ends.
Notice Period
The notice period is how much advance warning the contract requires before one side can take a major action — usually termination.
Representations and Warranties
Representations and warranties are the promises each side makes about the facts that matter — like "I have the right to sign this deal" or "our product is safe."