If you’re a startup (or any business, really) getting help from an advisor, it’s important to set out your business relationship in writing.
Advisors are technically external third parties, so it’s crucial that you set out the terms of their engagement with your business – this is known as an Advisory Agreement.
However, a FAST Agreement might be more suitable for your business if you’re looking to offer potential shares to your advisor instead of actual cash. This makes things easier and more flexible for startups who are just getting started, but need a little guidance moving forward.
Why Do I Need A FAST Agreement?
FAST Agreements are popular among startups who are in an exciting stage of their business journey, but need a little help hitting the ground running. Lots of founders have great ideas and just don’t know where to start, so this is where working with an advisor comes in handy.
In the early stages, startups usually have trouble offering money or financial compensation to the people they work with. Instead, a FAST Agreement allows startups to offer the right to receive shares in the company, where cash isn’t really an option.
What Does A FAST Agreement Cover?
Like we mentioned, a FAST Agreement will allow startup founders to offer shares to their advisors instead of money. So, this is one of the key terms that should be included in the contract.
But what other terms should you be covering?
When it comes to a FAST Agreement, you want to speak to a lawyer to ensure that you’re covering all your bases. Since you’re a startup, there are more risks involved, so it’s important that your contracts cover these.
Generally speaking, a FAST Agreement should also cover the services that the advisor will be offering, details about the shares and how they will be received.
Where Can I Get A FAST Agreement?
A FAST Agreement needs to be carefully drafted according to your startup’s current situation and needs.
At Sprintlaw, we offer a FAST Agreement package which includes the following:
- A FAST Agreement tailored to your startup
- Phone consultations with one of our expert lawyers who can guide you through the process
- A complimentary amendment to the final draft we provide to you
Working with advisors is a great way to make sure you’re on the right track with your startup, but it can be difficult when you’re working with limited resources.
A FAST Agreement offers flexibility when it comes to compensating your advisors for their services. If you need legal help with your options going forward, you can reach us at 1800 730 617 or firstname.lastname@example.org for a free, no-obligations chat.
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