The first hit is always free
Great idea really, give them time to get hooked on something, develop their business and get revenue, then come back and claim royalties.
Okay, so it's not a bad idea per se, but more than 4% of sales ? That's more than the current interest rate for someone else doing the work. I don't know what the royalty rate generally is, so maybe they're being eminently reasonable.
What of the companies that don't survive three years and fold ? Do they still have to pay the $3,000 minimum ?