If you are a business owner or an entrepreneur, you may have come across the term “advisory services agreement.” This is a legally binding agreement between a company and an advisor who offers guidance and advice on various strategic and operational aspects of the business.
An advisory services agreement typically outlines the scope of services to be provided by the advisor, the terms of the engagement, the fees to be paid, and the term of the agreement. The agreement may also contain provisions regarding confidentiality, non-compete clauses, and termination.
To help you better understand what an advisory services agreement looks like, we have provided a sample template below:
[City, State Zip Code]
[City, State Zip Code]
Dear [Advisor Name],
This Advisory Services Agreement (“Agreement”) is entered into between [Company Name] (“Client”) and [Advisor Name] (“Advisor”) on the date set forth above.
1. Scope of Services. The Advisor shall provide advice and guidance to the Client on matters related to strategic and operational business issues, which may include, but are not limited to:
a. Business planning and strategy
b. Marketing and sales
c. Financial planning and analysis
d. Organizational structure and personnel management
2. Term. The term of this Agreement shall be for [Insert Term] commencing on [Insert Start Date] and terminating on [Insert End Date] unless earlier terminated by either party.
3. Fees. In consideration of the services to be provided by the Advisor, the Client shall pay the Advisor a fee of [Insert Fee Amount] per [Insert Time Period] payable [Insert Payment Terms].
4. Confidentiality. The Advisor agrees to hold in confidence all confidential information disclosed by the Client, and to not disclose such information to any third party without the Client’s prior written consent.
5. Non-Compete. During the term of this Agreement and for a period of [Insert Time Period] thereafter, the Advisor shall not engage in any business that competes with the Client’s business.
6. Termination. Either party may terminate this Agreement upon [Insert Termination Clause].
This Agreement contains the entire understanding of the parties with respect to the services to be provided by the Advisor and supersedes all prior negotiations and understandings between them. This Agreement may be amended or modified only by a written instrument executed by both parties. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
If you agree to the terms set forth above, please sign below and return a copy of this Agreement to us.
In conclusion, an advisory services agreement is a critical document for any business owner who is seeking expert advice and guidance on various strategic and operational issues. With the help of this sample template, you can create your own advisory services agreement and ensure that all parties involved are clear on the scope of services, fees, and other important terms.