Understanding Picture Book Contracts: What Every Author Should Know
If you’re lucky enough to receive an offer of publication for your picture book manuscript—first, congratulations! It’s a huge milestone. But before you sign anything, it’s important to understand exactly what’s in your contract. Publishing contracts can be dense, filled with legal jargon, and occasionally overwhelming, but they are ultimately designed to formalize the business relationship between you and your publisher. And as the author, it’s critical that you know what you’re agreeing to.
Here’s a breakdown of the key areas to pay attention to—and why they matter.
1. Grant of Rights
This is one of the most important sections of your contract. It specifies exactly what rights you are granting to the publisher.
In most cases, you’re granting first publication rights—the right to publish your book for the first time. But you’ll want to make sure the contract is limited to what’s necessary. For example, are you granting only North American rights, or worldwide rights? English-language rights, or translation rights as well? Print and digital, or just print? Film and stage adaptations? Theme park ride? (Believe it or not, that is a clause!)
Ideally, you want to grant only the rights the publisher can and will actively use. Rights like foreign editions, film or stage adaptations, and merchandise should either be reserved for you or your agent to sell separately or should revert back to you if the publisher doesn’t exploit them within a set period of time.
Tip:
If you don’t have an agent, hire a publishing attorney to review the language before signing.
2. Advances and Royalties
The advance is the amount the publisher pays you up front against future royalties. It’s typically paid in installments (for example, a percentage on signing, a percentage on manuscript acceptance, and the balance on publication).
Royalties are the percentage of sales you’ll earn once the advance has been “earned out.” A standard author royalty is 10% of net sales, and only after the book has “earned out,” meaning paid the publisher back for the cost of bringing it to print.
Be sure you understand:
- The size of your advance (and when you’ll receive it)
- Your royalty rates for hardcover, paperback, e-book, and special sales
- How royalties are calculated (on retail price vs. net receipts)
And remember, a smaller advance isn’t always a bad thing—it often means the publisher has realistic sales expectations, which can set you up for earning out your advance faster and potentially getting a second book deal.
3. Delivery and Acceptance
This clause outlines your responsibility to deliver a completed manuscript (and sometimes, if you’re the illustrator too, finished illustrations) by a certain date.
It also gives the publisher the right to accept your manuscript—or request changes—before moving forward.
Deadlines and editorial processes can vary, so it’s worth clarifying:
- What’s the exact deadline for delivery?
- How much editorial input will the publisher expect you to be open to?
- What happens if major changes are requested after delivery?
Understanding the expectations up front helps set the stage for a smooth working relationship.
4. Author’s Warranties and Indemnities
This section sounds scary, but it’s standard. It requires you to warrant (promise) that:
- Your work is original
- It doesn’t infringe on any existing copyrights or trademarks
- You have the right to enter into the contract
Essentially, you’re promising that your manuscript is yours to sell—and agreeing to protect the publisher if any legal issues arise.
If you’re writing nonfiction, this becomes even more important, especially when dealing with quotes, interviews, or copyrighted material.
5. Rights Reversion
It’s easy to focus on the excitement of getting published—but think long-term too.
What happens if your book goes out of print? A good contract should include a rights reversion clause that allows you to reclaim your rights if the book is no longer selling and the publisher is no longer actively supporting it.
Make sure the threshold for “out of print” is clearly defined—ideally based on sales figures, not just availability.
6. Option and Non-Compete Clauses
Some publishers include an option clause, giving them the first right to consider your next book. Others may add a non-compete clause restricting you from publishing similar material elsewhere.
These clauses aren’t inherently bad, but they need to be reasonable. You want the flexibility to grow your career, so watch for language that could tie your hands too tightly.
You’ve worked hard to get here. Take the time to understand the fine print, ask questions, and advocate for yourself when necessary. And remember: You don’t have to navigate this alone. Agents, publishing lawyers, and experienced mentors are valuable resources. Publishing is a business—but it’s also a community, and there’s help available every step of the way.
