What is a Founders Agreement?

A founders’ agreement is a contract between the founding partners of a business that outlines the roles, rights, and responsibilities of each owner in a business. The founders agreement is designed to protect each founder’s interests and to prevent conflict down the line as the business grows or changes.

While most businesses are started with the best intentions, founders agreements help reduce future conflict between owners by agreeing on and documenting expectations up front.

Common items you need in your founders agreement:

  • Roles & Responsibilities
  • Equity Breakdown
  • Vesting Schedule
  • Intellectual Property Assignment
  • Dispute Resolution Process
  • Exit Strategies

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