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Founders Agreement

Free founders agreement template — co-founders agree on equity split, roles, vesting, and what happens if someone leaves, before incorporating or soon after.

This free founders agreement covers 1. Equity Split, 2. Roles and Responsibilities, 3. Vesting, 4. Time Commitment, 5. Decision-Making with 9 clearly marked [placeholder] fields to fill in — built for founders, freelancers, and small business owners formalizing a business decision or agreement without paying a lawyer to draft it from scratch. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.

Template — click to edit

Founders Agreement

Company: [Company Name] (or "the company to be formed") Founders: [List all founders] Date: [Date]

1. Equity Split

FounderEquity %
[Founder][%]
[Founder][%]

2. Roles and Responsibilities

FounderRoleKey Responsibilities
[Founder][Title][Responsibilities]

3. Vesting

All founder equity is subject to a vesting schedule: [Typical structure: "4-year vesting with a 1-year cliff, starting from [Date]"], even for founders — this protects the company and remaining founders if someone leaves early.

4. Time Commitment

Each founder commits [Full-time / specific hours per week] to the Company, [with any agreed exceptions].

5. Decision-Making

[How major decisions are made — unanimous, majority vote, or one founder having final say in specific areas.]

6. IP Assignment

Each founder assigns to the Company all intellectual property they create related to the business, both before and during their involvement.

7. What Happens If a Founder Leaves

If a founder leaves before their equity fully vests, unvested equity is forfeited back to the Company (available for redistribution or a new hire). [Describe any buyback right for vested shares of a departing founder.]

8. Deadlock Resolution

[If founders are evenly split and can't agree on a major decision: describe a resolution mechanism.]


[Each founder signs:] Founder: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Vesting even founder equity (Section 3) feels uncomfortable to agree to upfront but is exactly what protects everyone if a co-founder leaves after a few months — skipping it is one of the most common early-stage startup regrets. Use a licensed startup attorney once you're ready to formalize this.*

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What's included

Who this template is for

Freelancers & solo founders

Handling routine business paperwork without commissioning custom legal drafting for every document.

Small businesses

Standardizing recurring documents — leases, agreements, notices — across a growing operation.

Anyone reviewing before signing

Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.

Early-stage businesses

Getting the basics documented before things get more complex.

FAQ

Is this founders agreement template really free?

Yes. Like every template in docstoc's library, this founders agreement is free to use, with no account or signup needed to view, edit, or download it.

What does this founders agreement cover?

This business template includes 1. Equity Split, 2. Roles and Responsibilities, 3. Vesting, 4. Time Commitment. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.

Is this legal advice?

No. This is a general-purpose starting structure, not advice for your specific situation. Business agreements can hinge on details — state of formation, industry-specific regulation, how a dispute would actually play out — that a template can't account for. Have a business attorney review anything that involves real money or real risk before you rely on it.

Can I edit the wording?

Yes — edit directly on the page, adjust any section or clause, and re-fill the 9 placeholder fields to match your situation before downloading a PDF. It's a starting structure, not a rigid script.

Where can I find more free templates like this?

Browse more free business and related document templates in the docstoc library at /document-templates/.

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