Basic Sponsorship Agreement Template for United States

A Basic Sponsorship Agreement is a legally binding contract under U.S. law that establishes the terms and conditions under which one party (the sponsor) provides financial or in-kind support to another party (the sponsored party) in exchange for promotional rights, marketing benefits, or other specified considerations. This agreement outlines payment terms, sponsorship benefits, duration, termination conditions, and compliance with federal and state regulations, including FTC guidelines for advertising and disclosure requirements.

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What is a Basic Sponsorship Agreement?

The Basic Sponsorship Agreement serves as the foundational document for establishing sponsorship relationships in the United States. This contract type is essential when organizations or individuals seek to formalize promotional partnerships, ensuring clear definition of rights, obligations, and benefits for all parties involved. It addresses key aspects such as payment terms, promotional rights, exclusivity provisions, and compliance with federal advertising regulations. The agreement is particularly relevant in today's digital age where sponsorship arrangements span multiple platforms and require careful consideration of both traditional and digital marketing requirements.

What sections should be included in a Basic Sponsorship Agreement?

1. Parties: Identification of sponsor and sponsored party with full legal names and addresses

2. Background: Context of the sponsorship relationship and general purpose of the agreement

3. Definitions: Key terms used throughout the agreement including definitions of Sponsorship Rights, Territory, Term, etc.

4. Sponsorship Rights and Benefits: Detailed description of what the sponsor receives in exchange for payment, including usage of marks, advertising rights, and promotional opportunities

5. Payment Terms: Amount, schedule, and method of sponsorship payments, including any conditions or milestones

6. Term and Termination: Duration of agreement and conditions for ending it, including termination rights and consequences

7. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP owned by both parties

8. Representations and Warranties: Standard legal assurances from both parties regarding their capacity and authority to enter into the agreement

9. General Provisions: Standard legal clauses including governing law, notices, assignment, and entire agreement provisions

What sections are optional to include in a Basic Sponsorship Agreement?

1. Exclusivity Provisions: Terms regarding category exclusivity and restrictions on competing sponsorships

2. Morality Clause: Provisions regarding conduct and reputation, including right to terminate for reputational damage

3. Social Media Requirements: Specific obligations for digital promotion and social media content

4. Force Majeure: Provisions dealing with unforeseen circumstances preventing performance of obligations

5. Insurance Requirements: Specific insurance coverage requirements for either party

What schedules should be included in a Basic Sponsorship Agreement?

1. Schedule A - Sponsorship Benefits: Detailed list of all sponsorship deliverables, rights, and benefits

2. Schedule B - Payment Schedule: Detailed breakdown of payment amounts, dates, and any associated conditions

3. Schedule C - Brand Guidelines: Sponsor's brand usage requirements, restrictions, and approved formats

4. Schedule D - Reporting Requirements: Format and frequency of performance reports, metrics, and documentation requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Sector

Marketing

Cost

Free to use

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