Co-Founder Agreement Generator

What is a Co-Founder Agreement?

A Co-Founder Agreement is a legal contract between the founding members of a business venture that outlines the rights, responsibilities, ownership structure, and operating procedures among the founders. The agreement serves as a roadmap for the founder relationship, defining equity distribution, roles, decision-making processes, and contingency plans for various scenarios.

Key Sections Typically Included:

• Founder Identification and Roles
• Company Purpose and Vision
• Equity Allocation and Vesting Schedule
• Capital Contributions
• Intellectual Property Assignment
• Decision-Making Authority and Process
• Responsibilities and Commitments
• Compensation and Expense Policy
• Confidentiality Provisions
• Non-Compete and Non-Solicitation
• Dispute Resolution Process
• Departure and Exit Provisions
• Disability or Death Contingencies
• Amendment Procedures
• Company Dissolution Terms

Why Use Our Generator?

Our Co-Founder Agreement generator helps you create a comprehensive document that clearly establishes the foundation of your business partnership. By defining ownership structure, roles, decision-making processes, and contingency plans upfront, co-founders can focus on building their business with clear expectations and reduced potential for future conflicts.

Frequently Asked Questions

• Q: How should equity be allocated and structured among co-founders?
  • A: Equity allocation should reflect each founder's contributions, including skills, experience, capital, intellectual property, and time commitment. The agreement should specify initial ownership percentages, vesting schedules (typically 3-4 years with a 1-year cliff), and whether founding shares have special voting rights. Vesting protects the company if a founder leaves early.
• Q: What departure scenarios should be addressed?
  • A: The agreement should cover voluntary departure, involuntary termination (with and without cause), death, disability, and retirement. For each scenario, it should address equity treatment (including unvested shares), buyout provisions, intellectual property retention, ongoing obligations, and transition responsibilities. Right of first refusal provisions for selling shares should also be included.
• Q: How should major business decisions be structured?
  • A: The agreement should distinguish between day-to-day operations and major decisions requiring consensus or supermajority approval. Major decisions typically include financing rounds, acquisitions, major contracts, hiring executives, business pivots, and dissolution. Voting thresholds, deadlock resolution mechanisms, and whether any founder has veto rights should be clearly defined.