diff --git a/README.md b/README.md
index 511c920..d2c83b2 100644
--- a/README.md
+++ b/README.md
@@ -1,8 +1,9 @@
-# Custom agents template
+# Enterprise agent governance template
 
-This template repository makes it easy for enterprise and organization owners to get started with Copilot custom agents by providing:
+This template repository makes it easy for enterprise owners to get started with and establish settings for their agents by providing:
 * The basic file structure necessary for custom agents
 * An example agent profile in the `agents` directory
+* An empty `managed-settings.json` file, which defines governance and extensibility settings in clients
 
 > [!NOTE]
 > The example agent profile is commented out, so you can use this template repository without unintentionally making a custom agent available to your team.
@@ -12,3 +13,4 @@ This template repository makes it easy for enterprise and organization owners to
 1. Using this template repository, create a private repository called `.github-private` in your organization.
 1. Edit this README to best meet your needs. Consider including creation guidelines for custom agents or compliance considerations specific to your team.
 1. Edit the provided `agents/example-agent.md` file to create your first custom agent. For more information, see [Creating custom agents](https://docs.github.com/copilot/how-tos/use-copilot-agents/coding-agent/create-custom-agents).
+1. Edit the `managed-settings.json` file at `.github/copilot/managed-settings.json` to configure enterprise-wide client settings. For more information, see [About enterprise-managed plugin standards](https://docs.github.com/copilot/concepts/agents/about-enterprise-plugin-standards) and [Disabling automatic command approval in Copilot clients](https://docs.github.com/en/copilot/how-tos/administer-copilot/manage-for-enterprise/manage-agents/disable-automatic-commands).
diff --git a/copilot/managed-settings.json b/copilot/managed-settings.json
new file mode 100644
index 0000000..0967ef4
--- /dev/null
+++ b/copilot/managed-settings.json
@@ -0,0 +1 @@
+{}