What's included in your co-founder agreement template
The template includes everything you'll need to establish a solid foundation for your partnership:
- Parties and contact details
- New venture description and objectives
- Work contribution and responsibilities for each founder
- Equity ownership and vesting schedules
- Intellectual property assignment provisions
- Confidentiality obligations
- Non-compete clauses
- Dispute resolution procedures
- Term and termination conditions
Templates are accessible via the Business Kitz online platform and are downloadable in PDF and Microsoft Word formats.
Why does my business need a co-founder agreement template?
Starting a business with partners requires clear agreements from day one. According to research by Harvard Business School professor Noam Wasserman, 65% of high-potential startups fail as a result of conflict among co-founders, with many disputes arising from unclear expectations about roles, equity, and intellectual property ownership.
A comprehensive co-founder agreement helps you:
- Define each founder's roles, responsibilities, and work contributions
- Establish fair equity splits with appropriate vesting schedules
- Protect intellectual property created for the venture
- Set clear procedures for resolving disputes before they escalate
- Outline what happens if a founder leaves or the venture fails
- Create accountability and alignment among all partners
By documenting these critical elements upfront, you'll avoid costly misunderstandings and build a stronger foundation for your startup's success. At Business Kitz, we've designed this template to address the most common partnership challenges faced by entrepreneurs globally.
Co-founder agreement template FAQs
Who should use this co-founder agreement template?
This template is ideal for entrepreneurs, startup founders, and business partners who are beginning a new venture together. It's particularly valuable for tech startups, innovative businesses, and any partnership where intellectual property and equity distribution are critical considerations.
When should we sign a co-founder agreement?
You should sign a co-founder agreement as early as possible—ideally before any significant work begins on your venture. Industry best practice recommends formalising partnerships before intellectual property is created or equity discussions become contentious. Early documentation prevents disputes and ensures everyone's on the same page from day one.
What's the difference between a co-founder agreement and a shareholders agreement?
A co-founder agreement is designed for the pre-incorporation phase when you're exploring a business idea's viability. It covers initial work contributions, IP assignment, and basic equity splits. Once you incorporate your company, you'll transition to a shareholders' agreement, which provides more comprehensive governance structures for your established business.
Can this template handle different vesting schedules?
Yes, our template includes flexible vesting options to suit various partnership structures. You can implement time-based vesting (like a one-year cliff with monthly vesting), milestone-based vesting tied to business achievements, or create custom schedules that align with your venture's specific needs.
Is this template legally compliant internationally?
Our template is designed to create binding obligations between partners and follows international best practices for partnership agreements. However, legal requirements vary by jurisdiction, and purchasing this template doesn't constitute legal advice. For specific guidance on your partnership structure or complex equity arrangements, we recommend consulting local legal counsel.
How do I access and customise this template?
Simply sign up for a free trial with Business Kitz to get immediate access to this template and our entire library of business documents. You can download the template in your preferred format and customise all sections to match your partnership's unique requirements.
IMPORTANT NOTICE: While you are purchasing a very comprehensive template, it is important to understand that the purchasing of this template is not considered legal advice. If you require legal advice and support utilising this template, you will need to consult a lawyer.
