A Founders’ Agreement is a contract that a company’s founders enter into that governs their business relationships. The Agreement lays out the rights, responsibilities, liabilities, and obligations of each founder. Generally speaking, it regulates matters that may not be covered by the company’s operating agreement.
Ultimately, Founders’ Agreements are designed to protect each founder’s interests and memorialize that all founders are in agreement about the venture’s basic structure and how the founders will work together to move their business forward. Forging an agreement between all founders helps mitigate the risk of a lawsuit over who owns the business. There is a wide range of provisions that could be addressed in a Founders’ Agreement.
The template below includes provisions about:
*Transfer of ownership;
*Decision-making and dispute resolution;
*Representations and warranties; and
*Choice of legal authority... and more!