When it comes to entering into a dealership agreement, it is imperative to have a detailed and comprehensive contract in place between the manufacturers and dealers. Such agreements serve as the foundation for a successful business relationship, and they help ensure that both parties are on the same page when it comes to the terms of their partnership.
If you are in the process of creating a dealership agreement, it is important to understand what should be included in the contract. While every agreement will differ slightly depending on the specific needs of the parties involved, there are some key sections that should be present in any dealership agreement sample.
1. Obligations of the Manufacturer: This section outlines the responsibilities of the manufacturer in regards to their products, marketing, and support. It should detail the minimum sales targets and performance standards that the manufacturer expects from their dealer partners.
2. Obligations of the Dealer: This section should clarify the dealer`s responsibilities in areas such as sales, marketing, and customer service. It should also outline any restrictions or limitations on the dealer`s ability to sell products from competing manufacturers.
3. Territory: This section should outline the specific geographic area or market in which the dealer is authorized to sell the manufacturer`s products. It should also specify any exclusivity rights that the dealer may have in regards to that territory.
4. Term and Termination: This section should detail the length of the agreement, as well as the circumstances under which it may be terminated by either party. It should also outline any notice requirements that must be met before termination can occur.
5. Intellectual Property: This section should address any issues related to the use of the manufacturer`s intellectual property (such as trademarks, logos, and patents) by the dealer. It should also specify any limitations on the dealer`s use of such intellectual property.
6. Confidentiality: This section should outline the obligations of both parties to maintain the confidentiality of any sensitive information exchanged during the course of their business relationship.
7. Dispute Resolution: This section should clarify the process for resolving disputes between the parties, including any requirements for mediation or arbitration.
By including these key sections in your dealership agreement sample, you can help ensure that your contract is comprehensive and effective. Working with a qualified attorney familiar with dealership agreements can also help you craft a contract that meets your specific needs and protects your interests.