A founder's agreement is essential because it: - Clarifies expectations: It sets clear roles and responsibilities for each founder, reducing misunderstandings. - Prevents conflicts: By addressing key issues upfront, it helps in preventing disputes that could derail the startup. - Protects interests: It safeguards the personal and financial interests of each founder. - Provides a roadmap: It offers a structured plan for handling various scenarios, such as the departure of a founder or the sale of the company.