Service Agreement Template for Agency Businesses (UK 2025)
Last updated: February 2025
Why Agency Businesses Need a Service Agreement
Agency service agreements define the scope of creative, digital, or strategic services provided to clients on an ongoing or project basis. These agreements must balance the fluid nature of creative work with clear commercial boundaries including scope changes, additional revision charges, and approval processes. The agreement should protect the agency's creative process while giving clients appropriate oversight and approval rights at key milestones.
Key Clauses for Agency
- Scope definition with clear change request procedures
- Approval process and sign-off milestones
- Fee structure covering retainer, project fees, and ad hoc rates
- IP ownership transfer upon full payment
Common Mistakes
- Not including a formal change request procedure, allowing scope creep to erode profitability
- Failing to specify that IP transfers to the client only upon full and final payment of all invoices
Template Sections
- Scope of services and change request procedure
- Approval milestones and sign-off process
- Fee schedule and payment terms with IP transfer trigger
FAQ
When does intellectual property transfer from agency to client?
Best practice is for IP to transfer to the client only upon full payment of all invoices. Your service agreement should explicitly state this condition. Until payment is received in full, the agency retains ownership of all creative work, giving you commercial leverage and protection against non-payment.
How should an agency service agreement handle scope changes?
Include a formal change request procedure requiring written requests, agency assessment of time and cost impact, client approval of the revised scope and fees, and written confirmation before additional work begins. This protects both parties and prevents the gradual scope creep that destroys agency profitability.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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