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Pathway 04

Business Formation & Contracts

Founder agreements, guarantees, breach and remedies, franchising, and closing a company correctly.

Most business disputes are decided years before anyone sues — in the documents signed at the start. This pathway covers the paper that matters: founder agreements, guarantees, the contracts a company lives by, franchise disclosure, and the filings that end a business cleanly.

The guides share one operating principle: read for the downside. Every checklist here asks what happens on the bad day — a co-founder leaves, a deal collapses, a franchisor's projections miss — because that is when the clause you skimmed becomes the whole case.

Foundational guide

If you read one thing here

Business Formation & Contracts

Founder Agreements Before the First Dispute: Equity, Roles, Vesting, and Exit Terms

Most co-founder blowups trace back to questions nobody answered in writing: who owns what, who decides what, and what happens when someone leaves. Settle those questions early and cheaply — or later, expensively.

9 min

What changes the answer here?

  • Which state's law governs — formation state and choice-of-law clauses both matter
  • Whether the contract involves goods (UCC Article 2) or services (common law)
  • What the agreement says about remedies, notice, and cure periods
  • Personal exposure: guarantees, veils, and signature blocks
  • Deadlines — cure windows, disclosure periods, and statutes of limitation

Formation decisions

Equity, vesting, roles, and exits agreed before the first dispute.

Deal risk

Guarantees, breach, and the remedies that actually get ordered.

Business Formation & Contracts

Personal Guarantees in Business Deals: What Owners Put at Risk

A personal guarantee makes you — not just your company — liable for a business debt. One signature can put your savings and home on the line, so the terms deserve as much scrutiny as the loan itself.

9 min read

Endings

Dissolving correctly so liabilities don't follow you home.

Where this pathway connects

Questions here often lead into these areas next.