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Business & contracts 2 signers 3 pages 21 blanks to fill in

Transition Services Agreement Template

After you sell or buy a small business, put the seller's handover help in writing — what they will do, for how long, and what it costs.

Use This Template — Free See the Agreement Signers don’t need an account
Transition services agreement
The blanks in brackets are what you fill in. VergeHR adds each signer’s signature and date boxes.
Transition services agreement — page 1 of 3
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Transition services agreement — page 2 of 3
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Transition services agreement — page 3 of 3
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Use This Template Fill in the blanks, name who signs, and send — from VergeHR eSignature.

What is a transition services agreement?

A transition services agreement (TSA) is the short contract that sits alongside a business sale. The buyer now owns the business, but the knowledge of how it runs — the suppliers who need a call on Mondays, the regular customers, the quirks of the till system, the logins — still sits with the seller. The TSA sets out exactly what handover help the seller will give, over what period, how much of their time the buyer can ask for, and whether that help is included in the price or paid for separately.

This template is written for small business sales: a shop, café, trade business, agency or practice changing hands. It links to your sale agreement without changing it, makes clear that the buyer runs the business from day one and the seller is an adviser only, lets you choose a fee (included in the price, fixed, monthly or hourly) and an optional hourly rate for extra help, caps the seller's liability for the handover, and lets the buyer end the help early with notice. Seller and buyer both sign and initial every page.

Best for
Small business sales where the former owner helps with the handover
Signed by
The seller and the buyer (or an authorised person for each company)
Fee options
Included in the price, a fixed fee, a monthly fee or an hourly rate
Length
2–3 pages, initialled on every page

When to Use a transition services agreement

  • A café owner sells to a new operator and agrees to train them on suppliers, recipes and the till for six weeks
  • An agency founder sells the business and stays on call to introduce the buyer to key clients
  • A trade business changes hands and the seller hands over scheduling, suppliers and job pricing
  • A practice or clinic is sold and the former owner supports the transfer of systems and patient-facing staff
  • A company sells a product line and its manager helps the buyer's team take it over

What You Fill In

21 blanks, then the name and email of each person who signs: seller, buyer.

1 The sale

  • Date of this agreement*
  • Business that was sold*
  • Date of the sale agreement

2 Seller

  • Seller (company or person)*
  • Seller address
  • Person who will give the help

3 Buyer

  • Buyer (company or person)*
  • Buyer address

4 The handover

  • Handover help the seller will give*
  • Handover starts*
  • Handover ends*
  • Maximum hours per week
  • Where the help is given* at the business premises or remotely, as the parties agree · mainly at the business premises · mainly remotely, by phone and video call

5 Fees

  • How the seller is paid for the help* Included in the purchase price · A fixed fee for the whole period · A monthly fee · An hourly rate
  • Currency*
  • Fee amount
  • Hourly rate for help beyond the agreed hours or period
  • Invoices paid within (days)*

6 Other terms

  • Buyer's notice to end the handover early (days)*
  • Minimum liability cap
  • Governing law*

7 Who signs

  • Seller signature and date, job title, initials on every page · The person or company that sold the business and will give the handover help.
  • Buyer signature and date, job title, initials on every page · The person or company that bought the business.

What the transition services agreement Covers

  1. Background
  2. Transition services
  3. Period, time and place
  4. Fees
  5. Expenses
  6. The Buyer runs the Business
  7. Independent status
  8. Confidentiality and relationship with the sale
  9. Liability and ending early
  10. General

Using the transition services agreement, step by step

1 Link it to the sale

Name the business that was sold and, if there is one, the date of the sale agreement. The TSA only covers the handover help; the price, warranties and any restrictions on the seller stay in the sale agreement.

2 List the handover help precisely

Write one item per line: training on specific systems, introductions to named customers or suppliers, handing over logins and records, answering questions. The seller is promising exactly this list, so vague items like "general support" lead to disagreements later.

If the seller is a company, name the individual who will actually do the handover.

3 Set the period, hours and fee

Choose the start and end dates, an optional weekly cap on hours, and where the help is given. Then pick how it is paid for. If the help is included in the purchase price, you can still set an hourly rate for anything beyond the agreed hours or period, and a minimum liability cap.

4 Send it to the other side

Add the seller's and buyer's signers. VergeHR places both signature blocks, job-title boxes and initials on every page. Sign it at completion, alongside the sale documents.

Tips Before You Send It

  • Agree the TSA before the sale completes, so the handover starts on day one rather than after a negotiation.
  • Keep the list of handover help realistic for the time allowed — a weekly hours cap protects the seller and sets expectations for the buyer.
  • Make sure the governing law matches your sale agreement, so both documents are read the same way.
  • If the seller is also agreeing not to compete or solicit customers, that belongs in the sale agreement, not the TSA.

Sign It Online In Minutes

  1. Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
  2. Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
  3. Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Use the transition services agreement Template — It’s Free

Transition services agreement: frequently asked questions

What is a transition services agreement in a small business sale?

It is a separate contract in which the seller agrees to help the buyer take over the business for a set period after completion — training, introductions and handing over systems and records — and says whether that help is paid for or included in the price.

Does the seller become the buyer's employee?

No. This template says the seller provides the help as an independent contractor and adviser, with no authority to sign contracts or make commitments for the buyer unless the buyer authorises it in writing.

Can the buyer end the handover early?

Yes. The buyer can end it with the notice period you choose, and either side can end it if the other seriously breaches it and doesn't fix the breach within 10 days. The buyer pays for help provided up to the end, and a fixed fee is reduced in proportion.

Is an electronically signed transition services agreement valid?

In most countries, including the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada, an electronic signature is generally valid for an ordinary commercial contract like this one. VergeHR keeps an audit trail and a Certificate of Completion with the signed PDF.

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