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A founders agreement is a legal contract essential for partners launching a new business together. It outlines the roles, rights, and responsibilities of each owner, serving as a clear foundation for collaboration. This agreement can exist as a standalone document or be included in corporate bylaws, LLC operating agreements, or partnership agreements. Its primary purpose is to safeguard each founder's interests and prevent potential conflicts. In the event of disputes, the founders agreement provides a structured approach to resolving issues by clearly defining each owner's role within the business.