A business plan non-disclosure agreement template is a unilateral agreement between a business entity and a secondary party (recipient). This agreement restricts the use or access to confidential information and also known as a Business Plan NDA. When both of the parties signed the agreement, they agree not to disclose the information unless with authorized permission from the seniors.
In the current world, this agreement is becoming increasingly important. They assist in establishing and strengthening the relationship of trust between two or more business parties. Furthermore, the business plan NDA makes an open and free environment for both parties for conversation. They can freely share several business plans without worrying that a consultant/partner will turn to be a competitor.
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The significance of using a business plan non-disclosure agreement:
- The business plan NDA assist in securing one party from revealing confidential information to the unauthorized parties.
- It forbids the use of confidential information shared in order to create undue profits.
- By exposing the company’s confidential information to competitors, it forbids the likelihood of a dissatisfied or former employee from involving in sabotage.
- It allows one party to access or use confidential business information under specific conditions.
- It highlights the ownership of the business plan(s) as well as the dates created.
How do you write your business plan NDA?
Here are the key clauses that you must include in your agreement;
Introduction of parties
You should determine the document as a Business Plan Non-Disclosure Agreement in this section. Include the dates and the parties involved in the business plan, their names. In some cases, you can include the recitals where you have to give the involved parties background information. You may also like the lead-based paint disclosure form.
- Confidential information: you have to clearly indicate in this section what you mean by confidential information. In addition to this, specify the number of days the company will provide share the details with the recipient party.
- Recipient’s treatment of confidential information: here, you have to indicate that by maintaining confidentiality, how the receiving party will use the accessed business plan. Other exceptions about the use of confidential information may be mentioned.
- Term: this section indicates the period by which the recipient will treat the business plan like confidential information. So, you have to enter the number of months or years you would want the information to be kept confidential.
- No rights granted: this clause is for receiving party to remind them that even if the right to confidential information access is provided then it doesn’t indicate they will own the information.
- General provisions: This section includes other miscellaneous provisions that at the end of the document are grouped together. The general provisions may contain the following;
1- The nature of the relationship
4- Injunctive relief and indemnity
6- Government laws and attorney expenses
Signing the agreement
The document should end by official signing by the involved parties when the general provisions have been included. Remember that each party should sign two copies. The one copy is kept for future reference. You should also check Software Development Non-Disclosure Agreement template.
Free Business Plan Non-Disclosure Agreement Template
Business Plan Non-Disclosure Agreement & Guide
FAQS (Frequently Asked Questions)
You can’t share business plans freely with the public. You just have to share it with certain people who won’t disclose it to the public. Thus, they are confidential documents.
They help in securing the sensitive and confidential information of a business from the public reach. Additionally, the agreement makes sure that the good plan won’t be stolen and used by someone else.
Likewise, any legal agreement, you may have to face legal charges for breaking a Business Plan Non-Disclosure Agreement.