Featured Artist Agreement Template - Furnishing Company

The featured artist has a loan-out company — which means you don't contract with the artist, you contract with their business entity. This Featured Artist Agreement Template is built for the furnishing company structure: the artist's LLC, corporation, or other entity "furnishes" their services, signs the agreement, and represents that the artist will perform. The right template for the right deal structure.

Drafted by an entertainment attorney who handles featured artist deals at the independent and label level.

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What's Included

The Furnishing Company Structure

• Furnishing Company Identification — The business entity (LLC, corporation) that furnishes the featured artist's services is identified as the signing party, with the featured artist named as the individual whose services are being provided.
• Obligation of Artist — The furnishing company represents and warrants that the featured artist will perform as required under the agreement — binding the company, not just the individual.
• Artist Acknowledgment Provision — Optional inducement letter provision: the individual artist acknowledges the agreement and agrees to be bound by its terms directly if the company fails to perform.

Compensation

• Royalty Rate to Company — Featured artist's royalty (paid to the furnishing company) stated as a percentage of net master receipts from the track.
• Advance or Fee Option — Upfront payment to the furnishing company, structured as recoupable or non-recoupable depending on your deal.
• Accounting Schedule — Quarterly or semi-annual periods, with required statements and payment timelines.

Publishing

• Composition Ownership — If the featured artist contributed songwriting, their share of the underlying composition is defined and assigned to the furnishing company or the individual artist per their own arrangement.
• PRO Registration — Addresses how publishing shares are registered with ASCAP, BMI, or SESAC, and who is responsible for ensuring correct splits are on file.

Master Recording Rights

• Work for Hire — The featured artist's recorded performance is a work made for hire provided to you through the furnishing company, with a copyright assignment backup.
• Master Ownership — You (or your entity) own the master. The furnishing company/artist receives royalties, not ownership.
• Delivery Specs — File format, deadline, and technical requirements for the featured artist's recorded performance.

Representations & Warranties

• Company Authority — Furnishing company confirms it has full legal authority to enter the agreement and bind the featured artist to perform.
• No Conflicting Agreements — Company warrants neither it nor the featured artist is subject to any agreement that would prevent or restrict the featured appearance.
• Clean Contribution — No uncleared third-party elements in the featured artist's recorded contribution.

Credits, Likeness & Promotion

• Credit Language — Required credit format on DSPs, physical releases, and promotional materials, using the artist's professional/stage name.
• Likeness Authorization — Grant of rights to use the featured artist's name, image, and likeness for promotion of the track, subject to any reasonable approval rights negotiated.
• Promotional Timing — Addresses when the featured artist may begin promoting the track on their own channels.

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Common Mistakes This Template Helps You Avoid

❌ Using a direct artist agreement when the artist has a loan-out — If an artist's services are legally controlled by their LLC or corporation, a direct artist agreement may not be binding or may create ambiguity about which entity holds the rights. Use the right structure from the start.

❌ No inducement letter — If the furnishing company signs but the individual artist doesn't, and the company later dissolves or disputes arise, you have no direct claim against the artist. An inducement letter (built into this template) closes that gap.

❌ Master rights left ambiguous — Even in a furnishing company structure, the work-for-hire and assignment provisions are essential. The template includes both, creating a clean chain of title on the master recording.

❌ Royalty statements going to the wrong entity — Payments must go to the furnishing company, not the individual. The template specifies the correct payment recipient and accounting structure.

✅ This template is built for the exact situation where the artist's business entity is the contracting party — handled correctly from the start.

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Who This Is For

• Indie labels — working with established or mid-level featured artists who have loan-out companies and require their entity to sign all performance agreements.
• Independent artists & producers — collaborating with a featured artist who has formalized their business through an LLC or corporation.
• Music managers — representing the primary artist and dealing with a featured artist's management or attorney who insists on a furnishing structure.
• Anyone doing a featured artist deal — where the featured artist says "my company handles this" — that's the signal to reach for this template, not the direct artist version.

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Frequently Asked Questions

What's the difference between this and the Direct Artist Deal version?
The Direct Artist Deal version is used when the featured artist signs personally, in their own name. This Furnishing Company version is used when the featured artist's business entity (LLC, S-Corp, etc.) signs on the artist's behalf. If the artist says their company handles their contracts, or if their manager/attorney presents an entity name for the signature block, you need this version.

What is an inducement letter and do I need one?
An inducement letter is a separate acknowledgment signed by the individual artist confirming they are bound by the agreement even though their company signed it. This is important protection for you: if the furnishing company dissolves, becomes insolvent, or is otherwise unavailable, the inducement letter gives you a direct claim against the artist personally. This template includes inducement letter language built in as a provision — no separate document required.

Does the furnishing company own the publishing, or does the individual artist?
That depends on how the artist has structured their publishing. Some artists hold publishing personally; others assign it to a publishing company. The template addresses both scenarios with a fill-in-the-blank for the publishing recipient. Confirm with the artist or their attorney how their publishing is held before finalizing.

Can I use this template if the featured artist's "company" is just a DBA (doing business as)?
A DBA is not a separate legal entity — it's just a name the individual operates under. If the artist's "company" is a DBA rather than an LLC or corporation, you should use the Direct Artist Deal version instead, as there's no actual entity to sign.

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What Happens After Purchase

✅ Instant Download — Word (.docx) file delivered immediately after checkout.
✅ Fully Editable — Fill in the furnishing company name, artist name, royalty rate, and all deal terms directly in Microsoft Word or Google Docs.
✅ Attorney-Drafted — Furnishing structure, inducement provision, work-for-hire, and chain of title built in.
✅ Reusable — Covers every featured artist deal structured through a business entity.

Also available: Featured Artist Agreement - Direct Artist Deal for artists who sign personally, and Featured Artist Agreement - Royalty & Publishing Split for a specific compensation structure.

Not sure which featured artist template fits your deal? Email adam@acfreedmanlaw.com

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*DISCLAIMER: This template is provided as a starting point and does not constitute legal advice or create an attorney-client relationship. Furnishing company agreements involving significant advances, major label distribution, or complex loan-out structures should be reviewed by a qualified entertainment attorney before signing.