Finder's fees clause: Copy, customize, and use instantly
Introduction
A finder’s fees clause outlines the compensation that will be paid to an intermediary, or "finder," for introducing one party to another in a business transaction, typically for securing a deal, investment, or partnership. The clause defines the terms and conditions under which the finder will receive a fee, the rate or structure of the fee, and any specific requirements for the finder to earn it, such as successful completion of a transaction.
Below are templates for finder’s fees clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard finder's fee clause
This variation applies to a straightforward finder's fee for facilitating a transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee equal to [X%] of the total transaction value for introducing [Party Name] to a third party that results in a successful transaction. The fee will be payable within [X] days of the closing of the transaction.
Success-based finder's fee clause
This variation applies when the fee is contingent upon the successful completion of the transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, payable only upon the successful closing of a transaction between [Party Name] and a third party introduced by [Finder Name]. In the event the transaction does not close, no finder's fee will be owed.
Finder's fee with payment upon introduction clause
This variation applies when the fee is paid upon the initial introduction of the parties, regardless of the transaction's outcome.
[Party Name] agrees to pay [Finder Name] a one-time finder's fee of [X%] of the total transaction value upon the introduction of [Party Name] to [Third Party Name], irrespective of whether the transaction is ultimately completed. The fee will be due within [X] days of the introduction.
Tiered finder's fee clause
This variation applies when the finder’s fee is structured in tiers based on the size of the transaction.
[Party Name] agrees to pay [Finder Name] a tiered finder's fee based on the total value of the transaction. If the transaction value is less than $[X], the fee will be [Y%]; if the transaction value is between $[X] and $[Z], the fee will be [Y%] for the first $[X] and [Z%] for the remainder, and so on. The fee will be paid upon the successful closing of the transaction.
Finder's fee with exclusivity clause
This variation applies when the finder is given exclusivity for a certain period.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value for introductions made within [X] months from the date of this agreement. During this period, [Party Name] will not engage any other finders for the same transaction. The fee is payable upon the successful closing of the transaction.
Finder’s fee with commission clause
This variation applies when the fee is structured as a commission based on the transaction amount.
[Party Name] agrees to pay [Finder Name] a commission of [X%] of the transaction value for introducing [Party Name] to [Third Party Name] that results in a completed deal. The commission will be paid within [X] days of the transaction’s finalization and is based on the agreed transaction value.
Finder's fee with equity option clause
This variation applies when the finder’s fee can be paid in equity rather than cash.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, which may be paid in the form of equity in [Company Name] at [Company Name]'s discretion. If equity is offered, it will be valued at the current market price at the time of the transaction closing.
Finder's fee with refund clause
This variation applies when the finder's fee is refundable under certain conditions.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value upon the successful closing of the deal. If the transaction is later rescinded or canceled within [X] days, [Finder Name] agrees to refund [Party Name] [Y%] of the fee paid.
Finder’s fee with payment schedule clause
This variation applies when the fee is paid in installments based on milestones.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with payment to be made in installments. The first installment of [X%] will be due upon the introduction of [Party Name] to [Third Party Name], with subsequent installments due upon the successful negotiation of the deal and final closing.
Finder's fee for indirect introductions clause
This variation applies when the finder receives a fee for indirect introductions leading to a transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for any transaction resulting from an introduction made by [Finder Name], even if the introduction was made to a person or entity indirectly connected to [Party Name] or [Third Party Name]. The fee will be due within [X] days of the transaction’s completion.
Finder’s fee for repeat introductions clause
This variation applies when the finder receives fees for multiple successful introductions over time.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for each successful introduction that leads to a completed transaction with a third party. This arrangement will apply to any transaction that takes place within [X] months of the initial introduction, and fees will be payable upon each successful deal completion.
Finder's fee for introduction of investment clause
This variation applies when the finder introduces investment opportunities and receives a fee.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total amount of any investment secured by [Party Name] through an introduction made by [Finder Name]. The fee will be payable upon the completion of the investment and will be calculated based on the funds received by [Party Name].
Finder’s fee with due diligence clause
This variation applies when the finder is responsible for certain due diligence activities.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, subject to the successful completion of due diligence. If the due diligence process reveals any material issues that cause the transaction not to proceed, the fee will not be payable.
Finder’s fee with back-end payment clause
This variation applies when the fee is paid in the back-end, after the completion of the transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with payment due within [X] days of the transaction closing. The payment will be made as a lump sum once the terms of the transaction have been fully executed.
Finder's fee with no exclusivity clause
This variation applies when no exclusivity is provided to the finder.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value. [Party Name] retains the right to engage other finders during the term of this agreement, and no exclusivity is granted to [Finder Name] for this transaction.
Finder's fee with shared fee clause
This variation applies when the finder’s fee is shared with another party.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, which may be shared with another party who also contributed to the successful introduction. The fee will be divided in a manner mutually agreed upon by all parties involved, and each party will receive their portion upon closing the deal.
Finder's fee with limit clause
This variation applies when a cap is placed on the finder's fee.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with a cap on the maximum fee payable of $[Y]. This limit applies regardless of the total transaction amount, and no further compensation will be owed once the cap is reached.
Finder's fee with third-party payment clause
This variation applies when the fee is paid by a third party rather than the principal party.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with payment made by [Third Party Name], who will compensate [Finder Name] directly. The fee is due upon the successful completion of the transaction.
Finder's fee with cancellation clause
This variation applies when the finder’s fee is void if the transaction is canceled.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, payable only upon the successful closing of the transaction. If the transaction is canceled or not completed within [X] days, the finder's fee obligation will be void, and no payment will be due.
Finder’s fee with advance payment clause
This variation applies when the finder receives an advance on the finder's fee.
[Party Name] agrees to pay [Finder Name] an advance of [X%] of the expected finder's fee prior to the completion of the transaction. The remaining balance will be due once the transaction is finalized. Any advance paid will be deducted from the final fee.
Finder's fee for referral clause
This variation applies when the finder is compensated for referring a transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value for referring a business opportunity that results in a completed deal. The fee will be paid within [X] days of the transaction’s closure.
Finder’s fee for investment partnership clause
This variation applies when the finder introduces an investment partner.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total capital raised from the introduction of an investment partner. The fee will be payable once the investment is received and the transaction is closed.
Finder's fee based on deal structure clause
This variation applies when the fee is based on the structure of the deal.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value. The fee will be calculated based on the final deal structure, including any consideration paid in cash, securities, or other assets. The fee will be payable upon the completion of the transaction.
Finder's fee contingent on closing clause
This variation applies when the fee is contingent upon the closing of the transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, payable only upon the successful closing of the transaction. If the transaction does not close, no finder's fee will be due.
Finder's fee for multiple transactions clause
This variation applies when a finder is entitled to a fee for multiple transactions.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for each successful transaction introduced by [Finder Name], with no cap on the number of transactions. The fee will be paid on each transaction upon closing.
Finder's fee upon initial contact clause
This variation applies when the fee is paid upon the initial introduction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value upon the initial introduction of [Third Party Name], regardless of whether the transaction is completed. The fee will be due within [X] days of the introduction.
Finder’s fee for specific geographic region clause
This variation applies when the finder is compensated for introducing a transaction in a specific geographic area.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value for any introductions made in the geographic region of [specified region]. The fee will be paid upon the successful closing of the transaction.
Finder’s fee with no recourse clause
This variation applies when the finder has no recourse if the transaction does not close.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value only upon the successful closing of the transaction. If the transaction does not close, no finder's fee will be paid, and [Finder Name] has no recourse for compensation.
Finder’s fee for securing investment clause
This variation applies when the finder is compensated for securing an investment.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total investment secured by [Party Name] through the introduction of an investor by [Finder Name]. The fee will be due upon the receipt of the investment funds.
Finder's fee with early payment clause
This variation applies when the finder’s fee is paid before the transaction is fully completed.
[Party Name] agrees to pay [Finder Name] an early finder's fee of [X%] of the transaction value upon execution of the definitive agreement between the parties. The remainder of the fee will be paid upon the closing of the transaction.
Finder’s fee for referral to third-party intermediaries clause
This variation applies when the finder refers the transaction to a third-party intermediary.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value if the transaction is introduced by [Finder Name] through referral to a third-party intermediary. The fee will be payable upon the completion of the deal.
Finder's fee for joint venture clause
This variation applies when the finder’s fee is tied to the formation of a joint venture.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total value of any joint venture formed as a result of [Finder Name]'s introduction. The fee will be paid once the joint venture agreement is executed and the transaction closes.
Finder’s fee with conditional milestone clause
This variation applies when the finder’s fee is conditional upon achieving certain milestones.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, with the fee to be paid in installments upon achieving specific milestones, including the execution of the agreement, successful negotiations, and the closing of the transaction.
Finder’s fee for intellectual property transaction clause
This variation applies when the finder’s fee is tied to an intellectual property transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for introducing [Party Name] to a third party in connection with the sale, license, or transfer of intellectual property. The fee will be payable upon the successful closing of the transaction.
Finder's fee with retroactive payment clause
This variation applies when the finder's fee is due retroactively.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, with the fee payable retroactively if [Party Name] enters into a transaction within [X] months of the introduction, even if the deal occurs after the initial contact.
Finder’s fee for new business development clause
This variation applies when the finder is compensated for business development introductions.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for any new business development introduced by [Finder Name], including new contracts, clients, or customers. The fee will be payable upon the successful signing of the contract or agreement.
Finder's fee for facilitating mergers and acquisitions clause
This variation applies when the finder is paid for introducing a merger or acquisition opportunity.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for introducing [Party Name] to any potential party in a merger, acquisition, or sale of the company. The fee will be payable upon the completion of the transaction.
Finder’s fee for corporate financing clause
This variation applies when the finder is compensated for securing corporate financing.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for securing financing, whether through debt, equity, or other capital sources. The fee will be due once the financing is secured and the funds are disbursed.
Finder's fee for real estate transaction clause
This variation applies when the finder is compensated for introducing a real estate transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value for any real estate transaction introduced by [Finder Name]. The fee will be payable upon the successful closing of the real estate deal.
Finder’s fee with holdback clause
This variation applies when part of the finder’s fee is held back until the deal is finalized.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, with [Y%] of the fee held in escrow until [X] days after the transaction closes to ensure all conditions of the agreement are met.
Finder’s fee for partnership introductions clause
This variation applies when the finder is compensated for introducing a business partnership.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for introducing [Party Name] to potential partners in any business venture, including joint ventures, collaborations, or strategic partnerships. The fee will be due upon the successful formation of the partnership.
Finder’s fee for strategic alliance clause
This variation applies when the finder is compensated for facilitating a strategic alliance.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total value of any strategic alliance, including distribution agreements, technology partnerships, or cross-marketing arrangements. The fee will be payable once the alliance agreement is executed.
Finder’s fee for investor introductions clause
This variation applies when the finder is paid for introducing investors.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total capital invested, paid to [Party Name] as a result of [Finder Name]'s introduction of investors. The fee will be payable once the capital is invested and the funds are received.
Finder’s fee with cancellation fee clause
This variation applies when a cancellation fee is charged if the deal is not finalized.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] if the transaction is finalized. If the transaction is canceled by [Party Name], a cancellation fee of [Y%] will be payable to [Finder Name] within [X] days of the cancellation.
Finder's fee for a limited time clause
This variation applies when the finder’s fee is only applicable for a limited time.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for any introductions made within [X] months from the date of this agreement. The fee will only be payable if the transaction occurs within this period.
Finder’s fee with referral bonus clause
This variation applies when an additional bonus is given for successful referrals.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%], with an additional referral bonus of [Y%] if [Finder Name] successfully introduces additional parties that lead to new transactions within [X] months.
Finder's fee with split clause
This variation applies when the finder’s fee is shared between two parties.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with the fee to be split equally between [Finder Name] and [Other Finder Name] for their respective contributions to the introduction.
Finder’s fee for introduction of new clients clause
This variation applies when the finder is paid for introducing new clients.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for any new client or customer introduced by [Finder Name], with payment due upon the signing of a contract between [Party Name] and the new client.
Finder’s fee with performance clause
This variation applies when the finder's fee is tied to performance.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%], provided that [Finder Name] facilitates the transaction with [Third Party] and ensures successful completion of the deal. The fee will be paid upon verification of performance and successful transaction closure.
Finder's fee for partnership introduction
This variation applies when the finder introduces a partnership opportunity.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value for introducing [Party Name] to [Third Party Name] for the purpose of forming a partnership. The fee will be due upon the successful execution of a partnership agreement.
Finder's fee for acquisition introduction
This variation applies when the finder introduces a potential acquisition target.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the acquisition price if the transaction results in the acquisition of [Third Party Name], introduced by [Finder Name]. The fee will be payable upon the closing of the acquisition deal.
Finder's fee for funding introduction
This variation applies when the finder introduces a funding source for investment.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total capital raised through introductions made by [Finder Name] to investors. The fee will be due once the capital is received and fully allocated to the company.
Finder’s fee for technology licensing deal clause
This variation applies when the finder introduces a technology licensing deal.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total value of any technology licensing agreement entered into with [Third Party Name] as a result of [Finder Name]’s introduction. The fee will be payable upon the successful signing of the agreement.
Finder's fee with performance-based conditions
This variation applies when the finder’s fee is performance-based.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with the fee payable only if the transaction is completed successfully within [X] months of the introduction. If the deal does not close, no fee will be due.
Finder’s fee with a cap clause
This variation applies when the finder’s fee is capped at a certain amount.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, subject to a cap of $[Y]. Once the cap is reached, no additional fees will be due under this agreement, regardless of the transaction value.
Finder’s fee with no exclusivity clause
This variation applies when there is no exclusivity for the finder.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value for introductions made. [Party Name] retains the right to engage other finders for the same transaction, and no exclusivity is granted to [Finder Name].
Finder's fee for long-term agreement clause
This variation applies when the finder is compensated for securing a long-term agreement.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total contract value for securing a long-term agreement between [Party Name] and [Third Party Name]. The fee will be paid upon execution of the agreement and will be prorated based on the duration of the contract.
Finder's fee with milestone payments clause
This variation applies when the finder’s fee is paid in stages as milestones are met.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, with the fee paid in installments based on the completion of milestones, including the introduction, negotiation, and final closing of the transaction.
Finder's fee with exclusivity period clause
This variation applies when the finder has an exclusivity period to earn the fee.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value for introductions made within the exclusivity period of [X] months. If the deal closes within this period, the fee will be due immediately.
Finder's fee for customer referrals clause
This variation applies when the finder introduces customers.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total sales value from customers introduced by [Finder Name] to [Party Name]. The fee will be payable upon receipt of payment from each referred customer.
Finder's fee with success fee clause
This variation applies when the fee is paid only upon successful completion.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, payable only upon successful completion of the transaction. If the transaction does not complete, no fee will be owed.
Finder’s fee with direct payment clause
This variation applies when the finder receives direct payment from the party initiating the transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value. [Party Name] will directly pay the finder's fee upon closing of the transaction, with no intermediary involved.
Finder's fee for exclusive sales introduction clause
This variation applies when the finder is compensated for introducing sales opportunities.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] for securing exclusive sales opportunities. The fee will be paid once a formal sales agreement is executed with the party introduced by [Finder Name].
Finder's fee with conditional success clause
This variation applies when the fee is conditional on the success of the transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, contingent upon the successful closing of the transaction. If the deal fails for any reason, no fee will be due.
Finder’s fee for vendor introduction clause
This variation applies when the finder is compensated for introducing a vendor.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the contract value for any vendor introduced by [Finder Name] who enters into a supply agreement with [Party Name]. The fee will be due once the vendor contract is signed.
Finder’s fee with non-refundable upfront clause
This variation applies when the finder’s fee includes a non-refundable upfront payment.
[Party Name] agrees to pay [Finder Name] an upfront, non-refundable finder's fee of $[X] upon the introduction of a potential transaction. The remainder of the fee, if applicable, will be paid upon the successful completion of the transaction.
Finder's fee with split arrangement clause
This variation applies when the fee is shared with other finders.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value. If multiple finders are involved, the fee will be split based on a mutually agreed-upon percentage between the parties.
Finder's fee for exclusive distribution introduction clause
This variation applies when the finder introduces a distribution opportunity.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total value of any exclusive distribution agreement entered into as a result of the introduction made by [Finder Name]. The fee will be due once the distribution agreement is executed.
Finder’s fee with no-payment-in-advance clause
This variation applies when no payment is made in advance to the finder.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value upon the completion of the transaction. No upfront payment will be made to [Finder Name] prior to the successful closing of the deal.
Finder’s fee for business sale introduction clause
This variation applies when the finder introduces a business sale opportunity.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the sale price if [Party Name] sells the business to a third party introduced by [Finder Name]. The fee will be due upon the successful closing of the sale transaction.
Finder’s fee with mutual agreement clause
This variation applies when the fee is agreed upon mutually.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total transaction value, with the specific terms and conditions of the fee to be mutually agreed upon by both parties before any introductions are made.
Finder's fee based on net proceeds clause
This variation applies when the fee is based on the net proceeds of a transaction.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the net proceeds received by [Party Name] from the transaction, calculated after any costs or expenses have been deducted. The fee will be payable after the closing of the transaction.
Finder's fee for direct business contract clause
This variation applies when the finder introduces a direct business contract.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the value of any business contract entered into with a third party introduced by [Finder Name]. The fee will be payable within [X] days of the contract signing.
Finder's fee for direct investment introduction clause
This variation applies when the finder introduces an investment opportunity.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total capital invested in the business as a result of an introduction made by [Finder Name]. The fee will be due upon receipt of the investment.
Finder’s fee for long-term service agreement clause
This variation applies when the finder introduces a long-term service agreement.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the total value of a long-term service agreement entered into as a result of an introduction made by [Finder Name]. The fee will be paid upon the execution of the agreement.
Finder’s fee with payment via equity clause
This variation applies when the finder is paid with equity instead of cash.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, payable in equity in [Company Name]. The equity will be issued at the valuation on the transaction closing date.
Finder’s fee with maximum fee clause
This variation applies when a maximum fee is set.
[Party Name] agrees to pay [Finder Name] a finder's fee of [X%] of the transaction value, with a maximum fee of $[Y]. If the transaction value exceeds [Y], no additional fee will be due beyond the maximum amount.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.