Subscription has become one of the most powerful strategies to gain revenue. In the marketing strategy, websites mostly will show popup suggesting the visitors subscribe to their service. It is styled beautifully with a simple format and an easy-to-understand language. Then, here you are! We have tons of subscription agreement template that you can download for free.
On this internet, you will find tons of software subscription agreement template with various format and terms. However, for more straightforward work, you don’t need this. We even provide the free monthly subscription agreement templates and samples that you can use. Just hit the button!
Subscription Agreement Meaning
This agreement is made for outlining deal between a private investor and company. This agreement will outline specific shares with its price and other terms and conditions in the document. By drafting this document, the investor and the company can record their partnership agreement legally. Besides, this file is also used to sell the stock.
The subscription agreement is also used to track the shares sold in detail with a specific price. This outlines the aspect of the transaction such as confidentiality provisions, cost of the shares, and the number of the shares.
Some companies also outline a positive return that the investor will receive. It is written in various format such as in percentage of company revenue. Or, this is also written in a specific amount in a certain period.
The Benefits Of Subscription Agreement
For startup who needs more funding, this is a must to write the subscription agreement. Most investors prefer a limited partnership, which is also known as a silent partner. They are allowed to do one-time investment. The benefit of this investment is limiting the risk. However, investors cannot get full access to deciding for the company.
In the subscription agreement template, certain aspects determine the stipulation, which is:
- Information to share with the investors
- What can be asked to investors
- Parties that are allowed to invest
The use of a subscription agreement is when the company needs to raise the capital. This can be done by selling company possession or shares. The reason why some companies make this agreement is to attract more funding from the investors. Therefore, whether you are a person or a company, if you are planning to invest your fund in a company, this subscription agreement is a must. It will record any detail about the number and price of the shares. Other stipulations are also written in the document which later can be used as a guide when both parties should face discord in front of the court.
Another benefit of using this agreement is to protect the investor from the company. On the contrary, the company can prevent the investors from changing their minds getting out of the deal. This will mutually bind both parties.
That’s all the short information we can give. We do hope our subscription agreement templates can help you understand it better.