What is Sponsorship Agreement Drafting?
A sponsorship agreement is a contract between a brand sponsoring an individual and the individual who will promote the brand in exchange for sponsorship. It has to provide clarity on their roles and duties to prevent disputes.
If you need a sponsorship agreement drafted, you might wonder how to navigate the process. Although it can seem straightforward, this contract requires details related to legal compliance and the parties’ working relationship.
Read the rest of this article to explore what should be included in a sponsorship agreement, how to draft it, and why you should consider hiring a qualified lawyer to draft it for you.
What Key Information Should You Include in a Sponsorship Agreement?
A sponsorship agreement should include key terms to clarify all aspects of the deal, such as the following:
- Duration. The agreement term must be clearly stated, with an effective start and termination date.
- Payments. How the sponsored party will be paid and when they’ll receive payments must be explained. This can include installments or lump sum payments.
- Exclusivity. This part of the agreement should clarify if the sponsored party is going to work exclusively for the brand/company. It should provide information about how an exclusive agreement doesn’t allow working with competitors.
- Intellectual Property (IP). The sponsor’s IP will be used by the sponsored party, such as trademarks and logos. There must be clarity about what IP is included and how the sponsored party is authorized to use it.
- Sponsor benefits. The agreement must clarify what the sponsor gains, such as logo placement or the sponsored party’s participation at an event.
- Termination. How the agreement can be terminated by either party should be included, and any potential consequences.
How Should You Draft a Sponsorship Agreement?
Once you’ve included key terms in a sponsorship agreement, you should consider some important things to make the contract fair, reasonable, clear, and legally valid.
Mention Delayed Payments
Although your payment terms might be clearly defined, don’t forget to include what happens with delayed or missed payments, as well as how these will be handled, such as with penalties.
Clarify Sponsored Party Obligations
To prevent disputes, the agreement must detail exactly what duties the sponsored party has to fulfill. This should include what deliverables are required.
Be as specific as possible. For example, if the sponsored party will create social media posts for the brand, there must be information about how many posts must be done per week, what content should be included, and more.
Don’t Neglect Sponsorship Contributions
Although you might focus on what the sponsored party has to do, the agreement must also clearly define what the sponsor will provide. This might include product donations or financial support, for instance.
Explain IP Ownership
The brand/company in the agreement will want to protect ownership of their IP and prevent violations that can cause brand reputation harm. Make sure the agreement clearly defines who owns IP created during the agreement, and what happens to it after contract termination.
Discuss Contract Breaches
If one party doesn’t meet their agreed-on duties, the agreement must specify what process will be followed. For example, you might set a 30-day window for the party to remedy the issue.
Do You Need a Lawyer to Draft a Sponsorship Agreement?
Although you might have a good idea about how to draft a sponsorship agreement, it’s advisable to hire a lawyer for assistance. Not only will a lawyer align the agreement with all relevant laws, but they’ll help you by:
- Correctly identifying parties and avoiding any vague or misleading terms that can result in disputes.
- Stating accurate and detailed duties and roles so that both parties know what expectations they have to meet.
- Ensuring that all deliverables are realistic.
- Securing fair payment terms to prevent issues and disputes.
- Negotiating any one-sided or unfair terms with the other party on your behalf to protect your interests.
- Identifying any hidden risks. While some risks might not be noticeable at the start of your agreement, a lawyer will consider future risks that could affect you. They’ll include clauses in the agreement to protect you.
- Protecting your brand and IP. They’ll ensure that the agreement clearly states IP ownership and how it can be licensed.
- Considering industry obligations. While you might consider compliance with rules and laws, a lawyer will also specify your industry-specific obligations to prevent issues.
Where Can You Get a Legal Sponsorship Agreement Drafting?
You might have decided to use a lawyer’s services for help with drafting your sponsorship agreement, but perhaps you don’t know where to find the most reputable lawyer. Online legal platforms make the process of finding and hiring a lawyer simple.
ContractsCounsel is one of the largest online legal marketplaces. It connects you with vetted lawyers who have years of experience in conducting contract reviews and drafting.
If you want to request that a lawyer on the ContractsCounsel platform drafts your sponsorship agreement, here are the easy steps to follow online.
- Go to the ContractsCounsel marketplace. You can post your request (or project) for free.
- Include a few details of your project, such as the parties involved and what industry you work in, so you can match with the most suitable lawyers.
- Wait to receive lawyer bids. Instead of searching for a lawyer, you’ll receive multiple bids from lawyers on the platform who can assist you.
- Review the lawyers’ profiles. After receiving the lawyer bids, you can review the lawyers' profiles. ContractsCounsel provides lots of information about lawyers on its platform, such as their location, years of experience, field of expertise, previous projects, and client ratings.
- Hire a lawyer you think is best for your legal requirements. They’ll draft your sponsorship agreement for a flat fee.
