Membership agreement template

Want a fast and efficient way to onboard new members to your organization? Use this free membership agreement template to make the process faster and more efficient.

What is a Membership Agreement?

A membership agreement is a legally binding contract between an organization and a member. Its format might be a membership agreement form, with details filled in throughout and a signature at the end which binds the member by the terms agreed within.

It outlines the specifics of the membership, including the benefits, the fees, the duration, and other terms and conditions. This legal document helps both parties to understand and agree on their respective obligations and expectations, ensuring they are fully aligned.

What is the purpose of a Membership Agreement?

Membership agreements serve as a roadmap for the relationship between an organization and its members.

They establish clear expectations and define the terms of membership, such as fees, duration, benefits, and termination procedures.

By doing so, they help prevent potential misunderstandings and disputes, hopefully creating a mutually beneficial relationship between the organization and its members, and setting everyone up for success over time.

Who is responsible for managing Membership Agreements?

The responsibility of managing membership agreements typically falls to the organization inviting new members. This is because they usually use the same membership agreement template to onboard all of their members.

More specifically, membership agreements will involve input from the organization's management or legal teams, depending on the organization's membership model, risk appetite and capacity.

What does a Membership Agreement template typically include?

The contents of a membership agreement can vary considerably depending on the nature of the organization and the membership (check out the sample Membership Agreement PDF above to find out more). However, most membership agreements will have the same main components:

• Parties involved: The agreement should clearly state the names and contact information of both the organization and the member.
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• Membership benefits: This section outlines the benefits that the member will receive. It includes access to services, resources, discounts, and other perks. This might be gym membership, private club membership, society membership, and so on.
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• Duration of the membership: This outlines how long the membership lasts. It might also include information about renewal procedures.
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• Membership fees: This part covers the membership fee amount, payment method, payment schedule, and any additional charges. It might also address what happens in case of late payments or non-payment.
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• Termination conditions: This part outlines the circumstances under which the membership can be terminated, by either party. It should include notice period details and consequences for breach of contract.
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• Dispute resolution: This clause outlines the steps to be taken if a disagreement arises. It might specify negotiation, mediation, arbitration, or litigation, and possibly the jurisdiction that will govern the dispute.

How do organizations usually manage Membership Agreements?

The maturity of the organization often determines how it manage its membership agreements. Most organizations still take a manual approach to contract management.

Here's a glimpse into that conventional, manual process:

1. Drafting

‍The initial step involves drafting the agreement. This is usually done by a member of the organization's management team or administrative staff, often with input from legal counsel.

2. Review and approval

‍Once the draft is complete, it undergoes a review process. This often involves multiple stakeholders, including management, legal counsel, and sometimes board members. The draft may go through several rounds of revisions before it is finally approved. It's important to get this right, as granting or denying your membership rights you didn't mean to can have serious consequences.

3. Distribution

‍After approval, the agreement is distributed to prospective members, usually via email or a membership portal. The member is then required to read, agree to, and sign the agreement.

4. Storage and retrieval

‍Signed agreements are stored for future reference. In a manual system, this might mean physical storage in filing cabinets or digital storage in a disorganized computer directory. Retrieving specific agreements for review or dispute resolution can be difficult and long-winded.

5. Renewal and updates

‍Membership agreements often need to be renewed or updated. This could be due to changes in membership terms, legal regulations, or organizational policies. In a manual system, each agreement must be individually updated and redistributed for signature.

Problems with the manual process

The traditional approach to managing membership agreements, without a robust membership agreement template, can be painful for several reasons:

1. Time-sconsuming: Drafting, reviewing, and approving membership agreements manually can take a long time, especially if the organization has lots of members or if the agreements are complex.
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2. Prone to errors: Manual data entry and management can lead to errors, such as incorrect member information or missed terms. These errors can lead to misunderstandings, disputes, and potential legal issues, as well as bad blood with your members.
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3. Inefficient storage and retrieval: In a manual system, storing and retrieving agreements can be cumbersome. Physical contract storage requires space and organization, while digital storage can become disorganized and difficult to navigate without a proper filing system.
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4. Not scalable: As an organization grows and takes on more members, the manual process of managing membership agreements can become increasingly unworkable, which in turn can limit the organization's growth potential.
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5. Delayed process: The process of distributing agreements, waiting for members to sign and return them, and then filing them away can be slow. This can delay the onboarding of new members and the implementation of updated agreements.
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6. Lack of oversight: Without a centralized system, it can be difficult to keep track of all agreements, monitor their status, and ensure they're up-to-date. This lack of oversight can lead to lapses in agreements, missed renewals, and non-compliance with changes in regulations or organizational policies.

Can you automate Membership Agreement templates?

Fortunately, membership agreements are among the contracts that can be quickly and easily automated. By using an AI contract collaboration platform like Juro, your business can set up automated contract templates, which enables you to generate membership agreements in seconds using terms pre-approved by legal.

Juro also offers integrations with popular CRM platforms, allowing seamless data transfer from these systems into the contract's smart fields, effectively doing away with manual data entry.

Get your free Membership Agreement PDF - or try a truly digital workflow

Hit the button in the top right to grab your free Membership Agreement PDF. You can copy/paste this as a the basis for a template you create on your own.

However, you'll still encounter all the manual paperwork problems we discussed above. By automating the management of membership agreements in Juro, organizations can save time, increase accuracy, and focus more on serving their members.

To learn more about how your organization can streamline the contract process with Juro's all-in-one contract management platform, hit the button below.