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What points are required in a brand partnership agreement?
Don’t let the fine print tank your next big collaboration!
Brand partnerships can be a match made in marketing heaven—think of those iconic co-branded products that fly off shelves, or epic collaborations that break the internet with just one tweet. However, for every wildly successful campaign, there’s a cautionary tale: two companies that jumped in without a solid agreement and ended up with a messy fallout. It’s a situation no brand wants to experience, especially in today’s hyper-connected world where PR crises can ignite at the speed of a hashtag.
That’s why a brand partnership agreement should be more than just fine print. It’s a roadmap that guides how you’ll work together, promote each other’s images, and, if necessary, bow out gracefully. Below are the must-have clauses that will keep your partnership from becoming tomorrow’s viral disaster.
1. Scope of the Partnership
Why It Matters:
The first step is defining exactly what you and your partner plan to do together. Are you co-developing a new product line, running a joint marketing campaign, or endorsing each other on social media? A murky scope leads to misunderstandings—one partner might think they’re entitled to use your logo whenever, while you expected a single limited campaign.
Real-World Example:
Take the ill-fated collaboration between Nike and Lil Nas X over those “Satan Shoes.” Although Nike wasn’t officially part of the deal, the brand still caught serious backlash because its signature swoosh appeared. Clearly outlining your partnership scope helps avoid similar PR nightmares and brand entanglements.
2. Brand Usage and Guidelines
Why It Matters:
Your brand is an asset. If the other party splashes your logo in a way that clashes with your image or uses it on controversial products, you’re in for a headache. Detailed brand guidelines—covering color palettes, taglines, and even moral or reputational constraints—prevent your identity from being exploited or diluted.
Real-World Example:
Look at Adidas parting ways with Kanye West. While specifics aren’t public, it’s a reminder that partnerships can sour if a collaborator’s actions conflict with brand values. An agreement should clearly state the standards both parties must uphold.
3. Exclusivity and Non-Compete Terms
Why It Matters:
If you’re going all-in on a partnership, you don’t want to see your partner launching a near-identical campaign with your biggest rival. Decide whether it’s a fully exclusive deal or partially exclusive (e.g., for a specific product category). When everyone knows the rules up front, you reduce the risk of market confusion or brand fatigue.
Real-World Example:
Endorsement deals with celebrities often run into trouble when the star simultaneously advertises two competing brands. It muddles the message and can undermine the partnership’s impact—exactly what you’re paying to avoid.
4. Content Ownership and Approvals
Why It Matters:
Is that viral video you co-produced going to appear on your partner’s website, social channels, or maybe both? Who owns the final creative assets, and can either party use them for unrelated promotions in the future? And, crucially, who checks off the content before it goes live?
Real-World Example:
Pepsi’s notorious Kendall Jenner protest ad might have been stopped in its tracks if a robust approval process had flagged it earlier. Even big brands can miss glaring issues when final sign-off is murky or rushed.
5. Compensation and Termination
Why It Matters:
Let’s talk money. Are you splitting costs and profits? Paying a flat fee? Sharing a revenue cut? Hammer this out from day one. Plus, a partnership that goes south shouldn’t tie you indefinitely to a damaging situation. Specify how either party can end the agreement and what financial obligations remain.
Real-World Example:
Many brand deals collapse due to evolving business landscapes or public controversies. If your agreement doesn’t detail how to exit cleanly—whether by paying a penalty or refunding costs—you could be in for a legal tug-of-war.
Spotlight on ClariSign: Making It All Easier
Let’s face it: drafting an airtight agreement can be nerve-wracking, especially when brand reputations are on the line. ClariSign offers an AI-powered platform that ensures you’re not missing critical clauses—like exclusivity terms or brand guidelines—and streamlines the entire signing process. Upload your draft, let ClariSign’s AI highlight potential gaps, and then finalize signatures without a stack of email attachments flying around. Everything stays organized in one secure hub, meaning you can quickly retrieve the contract if any questions pop up later.
A Friendly Nudge
