Founder Agreement

What is a Founder Agreement?
A Founder Agreement is a foundational contract entered into by the individuals starting a business together. It sets out the core understanding between founders at an early stage—often even before the company is formally incorporated—by clearly defining their roles, responsibilities, ownership, and commitments to the business concept.

What does a Founder Agreement include?
A typical Founder Agreement covers key matters such as the business purpose, ownership and equity split, capital contributions, vesting schedules, management and decision-making rights, intellectual property ownership, confidentiality obligations, founder exit or resignation terms, dispute resolution mechanisms, and the timeline for forming the company. It also includes representations and warranties to ensure that each founder is legally able to contribute to the venture and that no third-party rights are being infringed.

Why is a Founder Agreement important?
A Founder Agreement is critical because it prevents misunderstandings and disputes at a stage when trust and expectations may still be informal. By clearly documenting how equity is earned, how decisions are made, what happens if a founder leaves, and who owns the business idea and related intellectual property, the agreement protects both the founders and the future company. It also provides credibility with investors, advisors, and partners by demonstrating that the founding team has aligned expectations and a clear governance framework from the outset.

How to use this Document?

1. Complete all required fields carefully
Enter accurate details for each founder, including names, addresses, capital contributions, ownership percentages, and the business purpose. Ensure the information reflects the actual understanding between all founders before proceeding.

2. Review and customise key commercial terms
Before finalising, review sections on ownership, vesting, management decisions, and dispute resolution to confirm they align with how the founders intend to operate the business. Adjust these terms where necessary so they accurately reflect your agreed arrangements.

3. Finalise, download, and execute the agreement
Once all inputs are complete and reviewed, generate the document on DocPro, download the final version, and ensure it is signed by all founders. Each founder should retain a signed copy for their records.