Founders Term Sheetswith expert lawyers

A Founders Term Sheet, also known as a Founders Agreement, is a contract that sets out the key points of agreement between co-founders of a business. It covers important matters such as ownership of the business, how decisions are made, what happens when a co-founder wants to leave the business, and how disputes are handled. Read more here.

No, term sheets aren’t usually legally binding. However, they are commonly used by startups and small businesses in their early stages to set out the key terms and foundations of the business moving forward.

This helps the founders build a clear understanding of the business’s goals and how they plan to achieve them, creating a useful blueprint for more formal and legally binding contracts later on. However, parties can make term sheets legally binding if they expressly agree to do so.

A Founders Term Sheet should cover the key terms between the founders, so it’s a good idea to work through these issues with a lawyer. This helps make sure the term sheet suits your business’s needs.

Common matters included in a Founders Term Sheet are:

• the founders’ responsibilities
• how the founders will be paid
• how many hours each founder is expected to contribute
• what happens if a founder wants to leave
• how decisions will be made
• how the business’s equity will be divided
• ownership of intellectual property

Our Founders Term Sheet package starts at $500 + GST. This includes drafting the document, a complimentary round of changes, and phone calls with a Sprintlaw corporate lawyer to discuss the terms you’d like to include and answer your questions.