Business is tough on relationships.
Some new business owners are shy about documenting their partnership. They fear the formality will put a strain on their marriage, their bro-dom or their friendship. But when they’re done well, written contracts SAVE relationships.
I’ve used this agreement for six different companies. I sold my share in two of them, and I’m still close friends with both former partners.
I’m a fan of the “Shotgun Exit” in particular. It’s fair to everyone, and provides a quick way to “rip the bandage off.” When a business buyout occurs, emotions can spiral out of control. I believe it’s better to get it done quickly and stay friends.
This is a sample, of course. Take it to a lawyer.
In the sample, the two business parties are named “X” and “Y.” Sub your name in for X, their name for “Y,” and add a Z if necessary.
Questions? If you’re starting a new box and want some help, you can book a free call here.
Here’s the PDF version:
Here’s the editable DOC version:
Further Reading: The Best-Laid Plans, CrossFit Journal