A founders agreement is a contract between the co-founders of a startup that sets out who owns what share of the company, what each person does, and what happens if someone leaves. Founders usually sign one at the very start, before raising money or hiring, when goodwill is high and the stakes are still low.
There are 25 founders agreement templates here, including basic, brief and detailed versions, a founders collaboration agreement and a founders agreement form. A sample founders agreement shows how the finished document reads. Each one is editable, so you can use it as a co-founder agreement for two founders or more.
Have the hard conversations before you fill anything in, such as how much time each founder will commit and what counts as leaving. Company and tax law vary by country, so have a lawyer review the agreement before you sign.
Founders often sign several documents when setting up a company. See our partnership agreement templates, board resolution templates to record early decisions, and confidentiality agreement templates to protect the business idea.
Practical Founders Agreement Templates
Sample Founders Agreement Template
Detailed Founders Agreement Template
Special Founders Agreement Template
Founders Colaboration Agreement Template
Brief Founders Agreement Template
Basic Founders Agreement Template
Company’s Founders Agreement
Founders Agreement Form Template
Pre-Formation Agreement Template
Founders Agreement Blank Template
Useful Founders Agreement
Founders Agreement Blank Template
Basic Components of a Founders Agreement Template
A founders agreement template can be designed and drafted in any way, and any important information can be included in it. However, a founders agreement must have the following basic components.
1. Names:
A founders agreement template should include the complete and correct names of all the founders of the company, however many there are. It should also include the full name of the company.
2. Company’s Business:
The purpose of the foundation or formation of the company and its business must be described properly and briefly.
3. Ownership:
This section must correctly state the percentage of ownership of each founder of the company.
4. Contributions by each Founder:
The contribution is what a person gives to become a founding member of the company. It can be cash, property, equipment, any other type of asset or some other consideration.
A founding member of a company must make valuable contributions to the company.
5. Roles and Duties:
A founders agreement must clearly set out the roles and duties of all the founders of the company. This helps the company run all its operations effectively and efficiently. The founders should have no confusion about their responsibilities.
6. Authority and the Power to make Decisions:
This section extends the ‘roles and duties’ section. The founders agreement must clearly state the authority of each founding member of the company.
In addition to this, it should also explain the decision making power of the founders of the company.
7. Compensations:
In some businesses, the founders do not take compensation or salaries from the company. This decision is entirely up to them.
Some founders may take compensation for their services while others choose not to. Similarly, some or all of the founders may choose not to take compensation in the early stages of the company’s development and take it at a later stage.
Whatever the case, the founders agreement must declare the amount of any compensation or salary paid to the founders.
8. Intellectual Property:
Intellectual property, or IP, is anything specific that sets your company or business apart from your competitors. It can be a design, logo, item or procedure that gives your business a distinctive identity.
A founders agreement must specify how such intellectual property will be sold. It should also state how that decision will be made, that is, whether by vote or by one founder who has the power to decide.
9. Resolving the Disputes:
A founders agreement should describe how any issues or disputes among the founders will be resolved. For example, it should state whether a dispute will go to an arbitrator or to a dispute resolution committee.
10. Retirement or Removal of Founders:
The agreement must clearly state the consequences, or the actions to be taken, if a founding member goes bankrupt, dies, retires, or is removed or fired from the company.
It must also state how a founding member will be removed from the company and what their rights and liabilities will be. It is also very important to specify how their share or interest will be split among the remaining co-founders.
Sample Founders Agreement Templates
Elemental Founders Agreement Template
Illustrative Founders Agreement Template
Special Shareholders Agreement Template
Company’s Founders Agreement Template
Business Founders Agreement Template
Simple Founders Agreement Template
Practical Founders Agreement Template
Important Founders Agreement Template
Exclusive Founders Agreement Template
Sample Shareholders Agreement Template
Founders Agreement Model Template
Founders Agreement Format
Founders Investment Agreement Template
Working Through a Founders Agreement
Use a founders agreement to discuss the actual ownership and working relationship, with appropriate legal and tax advice. An equal split does not by itself resolve control, contributions or departures.
- Record contributions, roles, ownership intentions and decision authority.
- Address intellectual property, commitments and potential conflicts.
- Review departure, transfer and dispute arrangements before relying on the agreement.
Worked Example
Example: two founders contribute different amounts of time and cash. They should discuss what happens if one leaves early and how company-created work is owned. Do not assume a generic vesting schedule or a verbal understanding fits their circumstances.
Common Mistakes to Avoid
Avoid treating incorporation paperwork as a complete agreement between founders. Keep related company documents consistent.
Related Templates
- Board Resolution Templates
- Partnership Agreement Templates
- Franchise Agreement Templates
- Cohabitation Agreement Templates
Frequently Asked Questions
Must founders have equal ownership?
That is a commercial and legal decision for the parties, informed by contributions, expectations and advice. State the agreed arrangement clearly.
Why address departures before a disagreement?
Clear arrangements can reduce uncertainty about control, work and ownership when circumstances change. Waiting until a dispute may make agreement much harder.
