Sub Dealer Agreement Template
A sub-dealer agreement template is a legal document that outlines the terms and conditions of a relationship between a primary dealer and a sub-dealer. A sub-dealer is a person or entity that resells or distributes products or services on behalf of the primary dealer. This type of agreement is common in industries such as automotive, technology, and telecommunications, where companies have dealerships or sales networks.
The sub-dealer agreement template typically includes the following sections:
Introduction: This section outlines the purpose of the agreement and identifies the parties involved.
Scope of Work: This section specifies the products or services that the sub-dealer is authorized to sell, the territories in which the sub-dealer is allowed to operate, and the sales targets that the sub-dealer must meet.
Payment Terms: This section describes the commission or fees that the sub-dealer will receive for every sale. It also outlines the payment schedule and the method of payment.
Duration and Termination: This section sets out the duration of the agreement and the terms under which it may be terminated. It also includes provisions for the return of unsold inventory and the payment of outstanding commissions.
Confidentiality and Non-disclosure: This section outlines the confidentiality obligations that the sub-dealer must abide by and the consequences of breaching them.
Intellectual Property: This section specifies the rights and responsibilities of the sub-dealer regarding the use of the primary dealer`s intellectual property, such as trademarks, logos, and patents.
Indemnification and Liability: This section outlines the parties` indemnification obligations and the limits of their liability in case of damages or losses.
Dispute Resolution: This section specifies the method of resolving disputes, such as mediation or arbitration, and the governing law of the agreement.
The sub-dealer agreement template provides a framework for a clear and mutually beneficial business relationship between the primary dealer and the sub-dealer. Ensuring that the terms and conditions are spelled out in detail can help to avoid disputes and misunderstandings down the line.
In conclusion, a sub-dealer agreement template is an essential document for companies that have a network of resellers or distributors. It provides clarity and structure to the relationship between the primary dealer and the sub-dealer, and can help to protect both parties` interests. It is important to consult with legal professionals experienced in this area to ensure that your template meets all relevant legal requirements.