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Sponsorship Partnership Agreement Template for Canada

A comprehensive legal agreement governed by Canadian law that establishes and regulates a sponsorship relationship between two or more parties. The document outlines the terms and conditions of the sponsorship arrangement, including financial commitments, rights and obligations, intellectual property usage, promotional activities, and performance metrics. It incorporates relevant Canadian federal and provincial regulations, particularly regarding advertising standards, intellectual property protection, and commercial relationships. The agreement serves as a foundational document for managing the sponsorship partnership, ensuring compliance with Canadian legal requirements while protecting both sponsors' and recipients' interests.

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What is a Sponsorship Partnership Agreement?

The Sponsorship Partnership Agreement is a crucial document for formalizing sponsorship arrangements in the Canadian market. It is typically used when one party (the sponsor) agrees to provide financial or in-kind support to another party in exchange for promotional rights, marketing opportunities, or other benefits. This agreement type is essential in various contexts, from sports and entertainment to cultural events and charitable initiatives. The document must comply with Canadian federal and provincial regulations, particularly those governing advertising, intellectual property, and commercial relationships. A well-structured Sponsorship Partnership Agreement should address key aspects such as sponsorship rights, payment terms, exclusivity provisions, intellectual property usage, and termination conditions, while incorporating specific Canadian legal requirements and industry standards.

What sections should be included in a Sponsorship Partnership Agreement?

1. Parties: Identification of the sponsor and sponsored party, including full legal names and addresses

2. Background: Context of the sponsorship relationship and general objectives of both parties

3. Definitions: Key terms used throughout the agreement

4. Sponsorship Rights: Detailed description of the sponsorship rights granted, including usage of names, logos, and promotional opportunities

5. Sponsorship Fees and Payment Terms: Financial terms, payment schedule, and any value-in-kind arrangements

6. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

7. Obligations of Sponsor: Sponsor's commitments, including payment, provision of materials, and approval processes

8. Obligations of Sponsored Party: Sponsored party's commitments, including delivery of sponsorship benefits and reporting requirements

9. Intellectual Property Rights: Management and protection of both parties' intellectual property

10. Approval and Quality Control: Process for approving use of marks and maintaining quality standards

11. Confidentiality: Protection of confidential information exchanged during the relationship

12. Representations and Warranties: Standard warranties about authority to contract and ownership of intellectual property

13. Limitation of Liability: Limitations on parties' liability and indemnification provisions

14. General Provisions: Standard legal clauses including governing law, notices, and assignment

What sections are optional to include in a Sponsorship Partnership Agreement?

1. Exclusivity: Terms regarding category exclusivity or territorial exclusivity, used when sponsor requires protected status

2. Marketing and Activation Rights: Detailed marketing rights and activation opportunities, used for complex promotional arrangements

3. Digital Rights: Specific provisions for digital and social media presence, used when digital assets are a key component

4. Hospitality Benefits: Details of hospitality packages and VIP access, used when event access is part of sponsorship

5. Performance Metrics: Specific KPIs and measurement criteria, used when performance-based elements are included

6. Force Majeure: Provisions for unforeseen circumstances affecting sponsorship delivery, particularly relevant for event-based sponsorships

7. Morality Clause: Rights to terminate for reputational damage, used in high-profile sponsorships

8. Insurance Requirements: Specific insurance obligations, used when significant risk exposure exists

What schedules should be included in a Sponsorship Partnership Agreement?

1. Schedule A - Sponsorship Benefits: Detailed list of all sponsorship rights and benefits to be provided

2. Schedule B - Brand Guidelines: Technical specifications for use of logos, marks, and brand assets

3. Schedule C - Payment Schedule: Detailed breakdown of payment amounts and timing

4. Schedule D - Reporting Requirements: Format and frequency of performance reports and metrics

5. Schedule E - Approval Procedures: Detailed procedures for obtaining approvals for promotional materials

6. Appendix 1 - Sponsored Events/Properties: List of specific events or properties covered by the sponsorship

7. Appendix 2 - Competitor Exclusions: List of excluded competitor categories or specific competitors

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Publisher

Genie AI

Cost

Free to use

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