What is a partnership proposal?

A partnership proposal is a document drawn up by a company when they want to enter into a joint venture with another company.

What should a partnership proposal include?

Any partnership proposal should include details like background of the company and objective(s) of the partnership, as well terms, conditions, responsibilities, and legal obligations entrusted to both parties.

What is the format of a partnership proposal?

A typical partnership proposal begins by addressing the motives behind forming the partnership and background of the companies involved. This is followed by mentioning the objective of the partnership, and other important details. At the very end, there’s a space for signing.

BUSINESS PARTNERSHIP PROPOSAL TEMPLATE

Prepared by: [Sender.FirstName][Sender.LastName] [Sender.Company]

Prepared for: [Signer.FirstName][Signer.LastName] [Signer.Company]

For a contemplated Partnership, Strategic Alliance or Joint Venture (JV) between [Sender.Company] (or “[Sender.Company]”), [Signer.Company](or “[Signer.Company]”).

Submitted by: [Signer.Company].

This proposal contains the proprietary information of [Signer.Company]and shall not be shared outside of the above named parties.

BACKGROUND

[Signer.Company]met with [Sender.Company] and [Signer.Company] and shared with them its plans related to describe the business venture.

[Signer.Company]possesses rare insights and expertise necessary to develop systems and applications related to the above, while [Sender.Company] has the resources needed to develop such systems and applications.

The parties believe there may be mutual benefit in forming a business partnership or strategic alliance and pooling their resources and assets in order to pursue the objectives below.

Objectives of the parties

Catalog Management

A DIY web-based platform wherein… ([Sender.Company] & [Signer.Company])

A more sophisticated application for comprehensive project-based catalog management services ([Signer.Company])

Data & Analytics

A DIY web-based platform wherein… ([Sender.Company] & [Signer.Company])

Contributions

& responsibilities

of the parties

[Signer.Company] owns intellectual property, including, but not limited to, plans, methods and processes needed for the development of the systems and applications contemplated above.

[Sender.Company] brings capital/resources and marketing and business development expertise as well as expertise in hosting and managing online subscription-based platforms. NOTE: the arrangement could be set up where funding is sought from outside [Sender.Company].

The below table shows each parties’ anticipated contributions during the development and execution phases of any strategic alliance or partnership that may be entered into.

		[Signer.Company]	[Sender.Company]
DEVELOPMENT PHASE	Web-based DIY Catalog Management platform	Intellectual property, including plans & know-how.	Capital/Software Development
	Project-based Catalog Management application	Intellectual property, including plans & know-how.	Capital/Software Development
	Web-based Data & Analytics platform	Intellectual property, including plans & know-how.	Capital/Software Development
		Intellectual property, including plans & know-how.	Capital/Software Development
		Intellectual property, including plans & know-how.	[Sender.Company] clients
		Intellectual property, including plans & know-how.	Capital/Software Development

		[Signer.Company]	[Sender.Company]
EXECUTION PHASE	Web-based DIY Catalog Management platform	Consult on upgrades & sales support	Website hosting & maintenance & customer service & sales & marketing
	Project-based Catalog Management	[Signer.Company] will perform all efforts related to project-based/non-DIY services
	Web-based Data & Analytics platform	[Signer.Company] will share data & provide sales support	Website hosting & maintenance & customer service & sales & marketing
		[Signer.Company] will perform all royalty accounting
		Sales support	Sales & marketing
		[Signer.Company] will have right of first refusal for these services

Rights in Developed Software & Services

The following depends on legal structure of the arrangement. The below assumes a strategic alliance will be formed.

		[Signer.Company]	[Sender.Company]
DEVELOPMENT PHASE	Web-based DIY Catalog Management platform	Ownership of IP and Tech	Perpetual License to be agreed
	Project-based Catalog Management application	Ownership of IP and Tech	Perpetual License to be agreed
	Web-based Data & Analytics platform	Ownership of IP and Tech	Perpetual License to be agreed
		Ownership of IP and Tech	[Signer.Company] may opt to license as add-on to DIY catalog mgmt. platform
			Rights/ownership in musical works in whole or part to be agreed – subject to existing agmts.
		Right of first refusal on…

Legal

considerations

This potential alliance or partnership could take a number of forms. Given the complexities, a strategic alliance agreement may make the most sense, but we need to clarify a number of items for that kind of agreement (e.g. revenue/profit splits or royalty payments). A JV could be construed as a partnership and if a JV is desired, it may make sense to set the JV up as an LLC for liability reasons. This could get complicated.

Revenue or profit splits / royalties

A discussion around revenue share, profit share or royalties is dependent on the legal considerations above. We will leave this TBD for now.

AGREED BY THE PARTIES:

[Sender.Company]

MM / DD / YYYY

Signature

[Signer.Company]