Tutoring Business Partnership Agreement

What a good one includes

• A clear breakdown of the initial financial investments and equipment, like laptops or curriculum licenses, that each partner is contributing.
• A detailed formula for how client fees are divided, specifically addressing whether partners are paid per teaching hour or by a flat equity percentage.
• An explicit schedule outlining who handles teaching hours, parent communication, curriculum design, billing, and marketing.
• A clause protecting who owns the lesson plans, worksheets, and digital materials created before and during the partnership.
• Guidelines on who owns the student relationships and whether a departing partner can tutor existing clients independently.
• A structured exit strategy explaining how a partner can leave, how the business will be valued, and how remaining assets will be split.

Common mistakes to avoid

• Failing to define who owns the curriculum and teaching materials, leading to messy battles over proprietary worksheets if the partnership dissolves.
• Assuming an equal 50/50 profit split is fair without accounting for differences in actual teaching hours or administrative workloads.
• Omitting a clear policy on how to handle make-up lessons, refunds, and late-paying tutoring clients.
• Neglecting to outline a formal process for adding new tutoring partners or hiring employee tutors as the business expands.

Frequently asked questions