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So, I have a job and I created a custom graphic for it. No charge to the customer. They want that also on a shirt embroidered. I alter the graphic to accommodate and send to be digitized. I charge the customer for the digitizing. If they want the file, they have to pay for the original artwork first as the digitized version is a derivative of my original art. If they provided the camera ready art or they hired and paid me to create their design and I had it digitized and charged a digitizing fee then yes, they would be entitled to the file.
 

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I said earlier I charge a digitizing fee but in reality I figure it into the order price. I have never broken down for a customer the itemized shirt cost/screen charges/ per print location/color.... etc etc...I just give them a per shirt price period based on quantity and add tax. I have only once had a question of cost and then when I was adding it up for them I said oh lookey here, good thing because I forgot to add your art charges....they never asked about the details again.....
 
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