Commissioned Retail Font: questions/seeking advice

Hey y'all,

First, if there is an existing thread on this topic, feel free to point me in that direction, but I couldn't find anything that helped with the exact scenario I'm curious about.

I've been contacted by someone interested in commissioning a typeface that they will use for their brand as well as sell on a few different platforms. Their budget is fairly low ($3-5k, scope is 7-8 weights with matching italics) so they are pitching this as a sort of "retail font collab" project (i.e. I get paid some $ for making the typeface, and also get some sort of royalty split and/or distribution rights). This is not a type foundry, but they do have one other typeface they distribute on a few platforms (another brand font, so I'd imagine it was a similarly structured project).

We haven't discussed details about rights, distribution, or royalties yet so I am here to see if anyone else has tackled a similar project. Curious about your thoughts on what royalty share and/or distribution rights seems reasonable for that budget, and any other advice on structuring this kind of project.

Thanks in advance!