FAQ
How do we handle disputes if our partnership agreement doesn’t cover a specific issue that arises?
Every template includes a dispute resolution section, but you’ll want to specify whether conflicts will go to mediation, arbitration, or court. Many agreements also recommend consulting a lawyer to draft addendums for unprecedented issues. The goal is to avoid gridlock—so include a timeline for resolving disputes before they escalate.
Can we use a partnership agreement to outline non-compete clauses for partners who leave the business?
Yes, these templates allow you to include non-compete or non-solicitation clauses, but enforceability varies by state. Typically, they’re limited to time (e.g., 1–2 years) and geography (e.g., the city where the business operates). Consult local laws or a lawyer to ensure the terms hold up if a partner decides to start a competing venture.
What’s the best way to structure profit splits if one partner contributes more capital upfront but the other handles day-to-day work?
Templates let you split profits based on equity, effort, or a hybrid model—like 60% to the investor and 40% to the operator for the first three years, then adjusting to 50/50 as revenue grows. Document how profits are calculated (gross vs. net) and whether distributions are monthly, quarterly, or tied to milestones to keep everyone aligned.
Comments
Join the conversation
Sign in to share your thoughts and leave a comment on this resource.
