Free Founder Agreement Templates. Download, Customize & Sign.

A co-founder agreement should cover: (1) equity split and ownership percentages, (2) vesting schedule with cliff period, (3) roles, responsibilities, and decision-making authority, (4) IP assignment - all IP built for the company belongs to the company, (5) what happens if a founder leaves (good leaver vs bad leaver), (6) non-compete and non-solicitation terms, (7) salary and compensation expectations, and (8) dispute resolution.

Founder vesting is a schedule over which founders earn their equity, typically 4 years with a 1-year cliff. If a founder leaves before the cliff, they get nothing. After the cliff, equity vests monthly. Vesting protects the company and remaining founders - if a co-founder leaves early, they do not keep all their equity. Investors almost always require vesting for founder shares before investing.

An IP assignment clause transfers ownership of all intellectual property created by a founder for the company to the company itself. Without it, a founder could technically own the code, product, or brand they built. This clause is critical - investors will not fund a company where IP is unclear. It should cover all work done before and after formation, even work done on personal time if it relates to the business.

Good leaver provisions apply when a founder leaves for acceptable reasons - illness, death, or mutual agreement - and allow them to keep some or all vested shares. Bad leaver provisions apply when a founder is fired for cause, resigns without notice, or breaches the agreement - resulting in forfeiture of unvested shares and sometimes a buyback of vested shares at a lower price. Define these terms precisely in the agreement.

Yes - especially when just starting. Founder disputes are one of the top reasons startups fail. A founder agreement prevents disputes over equity, decision-making, and what happens if someone leaves. It is far easier to agree on these terms when everyone is aligned and excited than after a disagreement arises. Investors will also require a founder agreement before committing capital.

Yes. All templates are jurisdiction-flexible by design. Download any template and edit in Word or PDF, or create a free Legitt AI account and let Lana AI tailor the governing law, equity structure, vesting schedule, IP assignment, and jurisdiction-specific startup provisions in under 60 seconds - no manual editing required.