What is a Dealership Agreement ?
A dealership agreement template format is a legal document that defines the conditions of the contract and is prepared between a distributor and a dealer.
The privilege of exclusivity or exclusive dealership is granted to performing and promising dealers, and the credentials should be checked prior to the agreement.
A Dealership Agreement often includes:
1. Agreement’s Goal
2. Agreement term and rights granted
3. Contract geographic restrictions
4. Consistent and uninterrupted supply of goods
5. Training and promotions
6. Transaction with a competitor clause
7. Third-party participation provision – designating sub-dealers and agents
8. Contract renewal clause
9. Policy on Termination
Why use a Dealership Agreement ?
A dealership agreement establishes the groundwork for operations such as exclusivity and sole dealership rights. The terms and obligations are determined by the rights. Dealers as well as a geographical precinct have exclusive rights. In contrast, sole rights denote the only authorised dealer to sell. The agreement binds the two parties to sell the products and services of a corporation without the ability to establish comparable arrangements with competitors. The agreements are product-specific, region-specific, and range from a short-term to a long-term term. The contract is also subject to renewal.
Format: Microsoft Word (.doc) (.docx) and Google Docs
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