Model Founders Agreement

First, make sure that the intellectual property developed for your business goes to the company itself, not to a particular person. Let`s say one of your co-founders comes up with an awesome recipe or new recipe. Your agreement should stipulate that any intellectual property developed for the company during working hours is the property of the company and not of a co-founder or employee who developed it. A founder/company agreement is a document used to ensure that disputes between co-founders, usually in a pre-corporation company, are kept to a minimum. The document is not required by law to set up a business; But it`s a good idea if there is more than one founder. The agreement aims to highlight roles and responsibilities, equity ownership and unshakability as well as the transfer of intellectual property. When a startup is created between a group of friends or people who trust each other, it may be useless for them to enter into a start-up (or business) agreement, but the number of problems that can arise between founders is often underestimated. There are a lot of things that people don`t think about or don`t know before starting a business, and so a start-up agreement can help clarify things and formalize the relationship between co-founders in the business sense. If a start-up is formed quickly or too quickly on the back of a good idea, the boundaries can blur around topics like IP.

.