Key Insight
"I'll be around to help" is not a training agreement. A training agreement defines what the seller must teach, for how long, and what the buyer can require — before the seller has been paid and incentives have evaporated.
What Training Agreements Specify
A well-drafted training clause includes:
- Duration: Number of days or hours of training included (typically 30-90 days, 20-40 hours/week)
- Format: On-site, remote, or mixed; scheduled in advance or on-call
- Scope: What must be covered — operational systems, customer relationships, vendor management, employee management, financial reporting processes
- Consulting rate: If the buyer requests additional training beyond the included period, a pre-agreed hourly or daily rate for extended consulting
Training vs. Transition vs. Consulting
Training: Formal knowledge transfer on how the business operates — systems, processes, vendors, operational protocols
Transition: Relationship-focused — introductions to customers, employees, and key contacts; continuity of operations; credibility transfer
Consulting: Ongoing paid advisory after the formal transition period ends
Most purchase agreements combine training and transition under a single provision.
Enforcing Training Obligations
If the seller fails to provide required training, the buyer's remedies are generally:
- Offset against any holdback or escrow
- Claims under the indemnification provisions
- Direct lawsuit for breach of the purchase agreement
In practice, litigation over training obligations is rare and expensive — it's more productive to structure financial incentives (holdback tied to training completion) than to rely on enforcement.
Free Prescore — No Credit Card Required
Apply this to a real deal in minutes. No account, no commitment.