Endorsement agreement template

Managing contracts effectively is critical for any business, especially in scaling organisations. Endorsement agreements – which are often high in volume but low in complexity – require a streamlined approach to ensure efficiency and compliance. 

This article delves into the essentials of endorsement agreements and the benefits of using templates. It also explores how Juro’s AI-native contract management platform can automate these agreements, saving time and reducing risk.

What is an endorsement agreement?

An endorsement agreement is a legal contract between a company and an individual (usually a celebrity, influencer or public figure) wherein the individual agrees to promote the company’s products or services. In return, the company compensates the endorser, either monetarily or with other benefits like free products or services. These agreements outline the terms of the endorsement, including the scope, duration and specific obligations of each party.

Endorsement agreements are essential in defining the relationship and expectations between the company and the endorser, ensuring that both parties are clear on their commitments.

What is the purpose of an endorsement agreement?

The primary purpose of an endorsement agreement is to formalize the relationship between the brand and the endorser. This contract ensures that both parties are clear on their commitments and the expectations from the endorsement. Key purposes include:

• Clarity and protection: Clearly defining the roles, responsibilities and compensation of the endorser helps avoid misunderstandings and disputes. For example, specifying the type and number of posts required from the endorser can prevent conflicts later on.
• Legal compliance: Ensuring that the endorsement activities comply with relevant advertising laws and regulations – like the Federal Trade Commission (FTC) guidelines in the US – helps protect the company from legal issues.
• Brand protection: Safeguarding the brand’s reputation by setting standards for how the endorser should represent the brand, including any restrictions on behaviour or actions that could harm the brand’s image.

Who manages endorsement agreements?

Endorsement agreements are typically managed by several teams within an organisation, each playing a crucial role in ensuring the agreement's success.

Legal teams make sure the contract meets all legal requirements and protects the company’s interests. They draft the agreement and handle any legal disputes that may arise.

Marketing teams identify suitable endorsers and define the scope and objectives of the endorsement. They work closely with endorsers to create effective marketing campaigns.

HR and talent management oversee contractual obligations related to compensation and benefits for the endorser. They ensure timely payments and manage any performance-related issues.

Commercial teams manage the overall relationship with the endorser and ensure the agreement aligns with business objectives. They monitor the endorsement’s impact on sales and brand visibility.

When are endorsement agreements used?

Endorsement agreements are used in various scenarios to leverage the influence of public figures and drive business goals. Common use cases include:

• Product launches – to create buzz and drive sales for new products. For example, a tech company might engage a famous influencer to promote a new smartphone.
• Brand campaigns – to enhance brand visibility and credibility. Fashion brands often use celebrities to endorse their clothing lines, boosting brand recognition.
• Event promotions – to attract attention and attendance to events. Music festivals and conferences often use endorsements to draw larger crowds.
• Seasonal promotions – to boost sales during peak shopping seasons like holidays. Retailers might collaborate with influencers to promote holiday sales and special offers.

What should an endorsement agreement template include?

When drafting an endorsement agreement template, it should include the following key elements:

Parties involved. Clearly identify the parties involved in the agreement. Include the legal names and addresses of both the endorser and the company.

Scope of endorsement. Detail the products or services that the endorser will promote. Specify the nature of the endorsement, such as social media posts, appearances, advertisements or public statements.

Duration of the agreement. Define the term of the agreement. State the effective and expiration dates, and any provisions for renewal or extension.

Compensation. Outline the payment terms, including the amount, payment schedule and method of payment. Include any bonuses, royalties or other forms of compensation.

Duties and obligations. Specify the endorser’s responsibilities, including the number of appearances, posts or other promotional activities required. Outline any exclusivity clauses that prevent the endorser from promoting competing products.

Usage rights. Define how the company can use the endorser’s name, image and likeness. Include provisions for the use of promotional materials during and after the term of the agreement.

Approval and review. State the process for approving promotional content. Specify whether the endorser has the right to review and approve content before it is published.

Confidentiality. Include a confidentiality clause to protect sensitive information shared during the partnership. Specify the duration of confidentiality obligations after the agreement ends.

Moral clauses. Add clauses that allow the company to terminate the agreement if the endorser engages in behaviour that could harm the company’s reputation.

Termination conditions. Detail the conditions under which the agreement can be terminated by either party. Include provisions for notice periods and any penalties for early termination.

Dispute resolution. Specify the method for resolving disputes, such as mediation, arbitration or litigation. Include the jurisdiction and governing law for the agreement.

Indemnification. State that the endorser will indemnify the company against any claims or damages arising from the endorser’s actions during the promotion.

Miscellaneous provisions. Include standard contract clauses such as entire agreement, amendments, and severability.

How are endorsement agreements typically managed?

Managing endorsement agreements manually can be time-consuming and prone to errors. Here’s a typical manual process:

1. Drafting and negotiation

In a manual process, legal teams or contract managers draft the initial endorsement agreement using word processing software. The agreement undergoes multiple rounds of edits and negotiations, often exchanged via email. This method is time-consuming and prone to errors as each version must be tracked manually.

2. Approval workflow

The drafted agreement is sent to relevant stakeholders for review and approval. Approvals are typically managed through email chains or by collecting wet ink signatures. This slows down the process, requiring frequent follow-ups and coordination to ensure all parties have reviewed and approved the document.

3. Execution

Once finalized, the agreement is printed and signed by both parties. Signed copies are then scanned and stored either digitally or in a physical filing system. This step involves additional manual effort to ensure that all signed copies are correctly archived.

4. Storage and retrieval

Agreements are stored in various locations, such as local drives, cloud storage, or physical filing cabinets. Retrieving specific agreements requires manual searching through these storage systems, which can be tedious and time-consuming – especially if documents are misplaced.

5. Monitoring and compliance

Key dates, such as renewal deadlines and performance milestones, are tracked using spreadsheets or calendar reminders. Monitoring compliance with the terms and conditions of the agreement is done manually, often necessitating regular follow-ups and checks to ensure adherence.

The pain points

The process we just described is common, but it has its flaws. Legal and business teams report the following pain points when using the manual approach to contract management.

Inefficiency:

• Drafting and negotiating through email can be time-consuming and prone to errors.
• Approval processes are slowed down by the need for manual follow-ups and reminders.

Lack of visibility:

• It is difficult to get a real-time overview of the status of each agreement.
• Stakeholders may not have easy access to the latest version of the contract.

Storage issues:

• Storing agreements in multiple locations can lead to misplaced or lost documents.
• Retrieving specific contracts can be tedious and time-consuming.

Compliance risks:

• Manually tracking key dates and compliance requirements increases the risk of missing critical deadlines.
• Ensuring adherence to contract terms relies heavily on individual diligence, which can lead to oversight.

Limited collaboration:

• Collaboration is hampered by the lack of a centralized platform for stakeholders to work together on contract drafts and approvals.
• Version control issues arise when multiple drafts are circulated via email.

Manage endorsement agreements with ease in Juro

Juro’s contract management platform transforms the way businesses handle endorsement agreements. Here’s how Juro can help:

Centralized workspace

Juro provides a browser-native workspace where all stakeholders can collaborate on contract drafts in real-time. Changes are tracked automatically, ensuring everyone works on the latest version and reducing the likelihood of errors.

Automated workflows

Approval workflows are automated within Juro, with notifications and reminders sent to relevant parties. This reduces the need for manual follow-ups, speeding up the approval process and ensuring timely reviews.

Electronic signing

Agreements can be signed electronically within Juro’s platform, eliminating the need for printing, scanning and physical storage. Signed contracts are automatically stored and organized, streamlining the execution process.

Easy retrieval and search

Contracts are stored in a secure, searchable repository, making it easy to find specific agreements and clauses. Advanced search features enable quick retrieval of any contract or term, enhancing efficiency and access.

Compliance and monitoring

Juro enables automated tracking of key dates and milestones, with reminders sent to relevant parties. This ensures compliance with contract terms and reduces the risk of missed deadlines and non-compliance.

Enhanced visibility

Juro’s contract dashboard provides a real-time overview of all active contracts, their status, and key dates. This visibility helps stakeholders stay informed and proactive in managing agreements, improving overall contract management.

Juro's AI-native contract automation platform empowers all teams to create, agree, execute and manage contracts up to 10x faster than traditional tools. To find out more, hit the button below to book your personalized demo.