About This Document

This Founders Agreement sets the foundation for a partnership between individuals launching a new business venture together. It outlines each founder’s roles, responsibilities, ownership stakes, intellectual property rights, and dispute resolution processes, helping to prevent misunderstandings and conflicts as the company grows.

Who Should Use This Template

• Startup co-founders establishing a new business or project together

• Entrepreneurs seeking to formalize contributions, ownership percentages, and decision-making

• Founders who want to protect intellectual property and ensure confidentiality

• Small teams who need clear, early-stage agreements before seeking funding or scaling operations

What the Template Includes

• Ownership and capital structure terms, including share distribution and pre-emption rights

• Assignment of roles and responsibilities to each founder

• Procedures for strategic and operational decision-making

• Clear ownership of intellectual property created during the venture

• Non-compete and confidentiality clauses protecting the business

• Step-by-step dispute resolution process (negotiation, mediation, arbitration)

• Terms for termination of the agreement and effects of founder departure

• Governing law and miscellaneous provisions for amendments, assignment, and notices

• Editable Word format for easy customization

Instructions for Completing the Template

• Insert each founder’s full legal name, business name/project name, and a brief business description.

• Define the initial ownership split and insert the details in Schedule A.

• Specify if any pre-emption rights exist (meaning founders must offer shares to each other before selling to outsiders — in Schedule B).

• Clearly state each founder’s position and duties (e.g., CEO, CTO).

• Set a decision-making process for major company decisions (requiring unanimous or majority consent).

• Determine the length and geographic scope of the non-compete period after a founder leaves.

• Choose an arbitration body and location for dispute resolution if needed.

• Fill in key periods such as notice periods for termination, cure periods for breaches, and disability periods if applicable.

• Finalize with all founders' signatures and execution dates.

Important Reminder

This document is provided as a template to assist with early-stage startup collaboration agreements.
It does not constitute legal advice. Founders should consult a qualified attorney to adapt the Agreement to their business, especially if they anticipate raising outside investment, creating complex equity arrangements, or protecting significant intellectual property assets.