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Finder's Fee Agreement
I need a finder's fee agreement for a consultant who will introduce potential clients to our company, with a 5% commission on successful deals, payable within 30 days of contract signing, and a confidentiality clause to protect sensitive information.
What is a Finder's Fee Agreement?
A Finder's Fee Agreement sets out the terms for paying someone who helps connect businesses to valuable opportunities or partners. Under Belgian commercial law, these contracts formalize how intermediaries earn compensation for successfully introducing buyers to sellers, helping companies find investors, or connecting employers with key talent.
Belgian courts generally uphold these agreements when they include clear payment terms, specific success criteria, and a defined scope of services. The fees typically range from 2-5% of the transaction value, though rates can vary by industry. Companies must ensure these arrangements comply with Belgium's strict rules around professional intermediaries and commercial agency regulations.
When should you use a Finder's Fee Agreement?
Use a Finder's Fee Agreement when you need help finding business opportunities but don't want to hire a full-time employee. This contract works perfectly for one-off situations like locating potential buyers for your company, securing new investors, or discovering prime real estate for expansion. Belgian law requires these agreements for protecting both parties when working with business intermediaries.
The timing is crucial鈥攑ut this agreement in place before your finder starts making introductions or sharing leads. For transactions above 鈧50,000, Belgian regulations mandate written documentation of finder arrangements. Many businesses use these agreements during growth phases, mergers and acquisitions, or when entering new markets.
What are the different types of Finder's Fee Agreement?
- Fixed Fee Agreements: Set a predetermined payment for successful introductions, common in real estate and small business sales
- Percentage-Based Agreements: Calculate fees as a portion of deal value, typically 2-5% for M&A transactions
- Success-Only Agreements: Payment occurs solely upon completed transactions, popular in investment matchmaking
- Tiered Fee Structures: Sliding scale payments based on deal size or complexity, used in larger corporate transactions
- Retainer-Plus-Success Agreements: Combine monthly fees with success bonuses, common for ongoing business development relationships
Who should typically use a Finder's Fee Agreement?
- Business Owners: Sign Finder's Fee Agreements to formalize relationships with intermediaries who help expand their companies
- Business Intermediaries: Professional networkers and consultants who connect parties and earn fees for successful introductions
- Corporate Lawyers: Draft and review agreements to ensure compliance with Belgian commercial law
- Investment Brokers: Use these agreements when connecting investors with businesses seeking capital
- Real Estate Agents: Rely on finder's fees when helping companies locate commercial properties or development opportunities
- M&A Advisors: Facilitate business sales and mergers through documented finder arrangements
How do you write a Finder's Fee Agreement?
- Identify Parties: Gather full legal names and contact details of both the finder and the company seeking opportunities
- Define Services: List specific types of introductions or opportunities the finder will pursue
- Payment Structure: Determine fee amounts, calculation methods, and payment timing
- Success Criteria: Clearly outline what constitutes a successful introduction warranting payment
- Time Period: Set the agreement duration and any post-termination obligations
- Legal Requirements: Ensure compliance with Belgian intermediary regulations and commercial codes
- Documentation: Prepare proof of introductions and tracking systems for potential disputes
What should be included in a Finder's Fee Agreement?
- Party Details: Full legal names, addresses, and registration numbers of finder and client
- Service Description: Precise scope of finder activities and target opportunities
- Fee Structure: Detailed calculation method, payment timing, and success criteria
- Term and Territory: Duration of agreement and geographical limitations
- Confidentiality: Protection of sensitive business information shared during introductions
- Non-Circumvention: Prevents direct dealings that bypass the finder's fee obligation
- Dispute Resolution: Belgian court jurisdiction and applicable commercial laws
- Termination Rights: Conditions for ending the agreement and post-termination obligations
What's the difference between a Finder's Fee Agreement and a Fee Agreement?
Let's compare a Finder's Fee Agreement with a Fee Agreement. While both involve payment arrangements, they serve distinct purposes under Belgian law. A Finder's Fee Agreement specifically rewards intermediaries for successful introductions or deals, while a Fee Agreement covers broader professional services with predetermined payment terms.
- Scope of Services: Finder's fees focus solely on making introductions and facilitating connections, while Fee Agreements cover direct service delivery and ongoing work
- Payment Structure: Finder's fees are typically success-based and calculated as percentages of deal value; Fee Agreements usually involve fixed rates or hourly billing
- Legal Framework: Finder's agreements fall under Belgian intermediary regulations, while Fee Agreements align with general service contract laws
- Duration: Finder's arrangements often end after successful introduction, while Fee Agreements typically cover ongoing service relationships
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