Fashion Brand Co-Founder and Partnership Agreement

What a good one includes

• A clear breakdown of equity ownership percentages and a vesting schedule to ensure partners earn their shares through continued commitment over time.
• Explicit definitions of daily responsibilities, distinguishing who holds final approval over creative designs versus business and financial operations.
• A detailed record of initial cash, equipment, or fabric inventory contributed by each partner, along with rules for how future funding rounds will be handled.
• Unambiguous clauses stating that all brand names, logos, patterns, and clothing designs belong to the business entity rather than any individual founder.
• A structured plan outlining how and when profits will be reinvested back into the fashion line versus when partners can take personal financial draws.
• A clear buy-sell provision detailing what happens if a partner wants to leave the label, experiences a life change, or if the brand needs to wind down.

Common mistakes to avoid

• Assuming a handshake deal or a generic template is enough to protect highly specific creative assets like pattern designs and trademarked brand names.
• Failing to establish who holds ultimate creative veto power, which can lead to paralyzing deadlocks during collection launches.
• Neglecting to write down a vesting schedule, meaning a co-founder could walk away with half the brand after only three months of work.
• Overlooking how personal equipment, like industrial sewing machines or studio spaces, will be treated if the partnership dissolves.

Frequently asked questions