A Dealer Managers Agreement is drafted between the dealer manager and the company. The dealer manager in most cases is responsible for the profit & loss and employee management. They also ensure that the customers are happy and satisfied with the company’s products or services.
It goes without saying that for such a workflow to be smooth, efficient and fair, both the company and the dealer would want to sign this agreement. It will have the details of dealer manager’s responsibilities and tasks, and details of his compensation. The company should also specify if there is a fixed amount that needs to be paid to the dealer manager by the end of a term. A few companies also provide a possession of some shares and stocks to the manager. Details of these must be explicitly written in the agreement.
When is the Dealer Managers Agreement Needed?
A Dealer manager Agreement is needed when a company decided to work with a dealer manager or dealer relationship manager. Both the parties sign this agreement to make sure that they both are on the same page when it comes to their partnership and business term.
Purpose of The Dealer Managers Agreement:
- To lay down the responsibilities of the dealer manager
- To present the compensation rules for the dealer manager
- To put the information about stocks and shares given to the manager by the company
- To mention the entire fee structure
- To lay down disclaimers and conditions
- To tackle the conflicts better
Inclusions in the Dealer Managers Agreement?
It is extremely important to draft such an agreement carefully and professionally. Even though the clauses in this agreement are less complex, it is still paramount for both the parties to include every key point in the agreement. Some key points that must be included are:
- Total amount due to the dealer manager at the end of the business term
- Duties and responsibilities of the dealer manager
- Details of shares and stocks that the dealer manager is entitled to possess
- Details of what happens when there is a breach of the agreement
- The time period of the business term
- Names and addresses of both the parties
- Signature of both the parties
How to Draft the Dealer Managers Agreement?
To draft the agreement, first it is important for both the parties to decide on terms and conditions in person. Further, some help from an expert can be taken too. The expert makes sure that legal obligations are followed and are taken care of while drafting the agreement.
All important details that can later create conflicts should be cross checked. Agreement should make sure that it shouldn’t be construed as an employment letter for the dealer manager. If reimbursement of expenses apply, then details of that should be put in the agreement.
Benefits of the Dealer Managers Agreement
Since it’s a kind of agreement that lays the foundation of business term between a company and dealer manager, it doesn’t really have any disadvantage. But there are many advantages of such an agreement.
Pros of The Dealer Managers Agreement:
- High flexibility
- Good administration
- Recording of customer satisfaction
- Improved revenues
- Enhanced customer experience
- Better employee management
Key Clauses in The Dealer Managers Agreement
Like every other agreement, the dealer manager agreement too has many clauses that the company and manager should be aware of. Both the parties should read the clauses carefully before signing the agreement.
- Dispute resolution
What Happens When You Violate the Dealer Managers Agreement
All the agreements bear the risk of violation, breach, and default. Both the parties can default but the good news is that both the parties can take help of the state laws depending on which state you are from and where the agreement was signed. Mostly the agreement would contain details of such laws. These agreements are customisable so you can make sure that security against any default is a provision in the agreement.
Cases of default can also be regarding the fee of the dealer manager. Manager should know about the laws protecting him from such a fraud and default.
Sample Dealer Managers Agreement
It’s a very important document that protects both the dealer manager and the company. It should be drafted with maximum caution. It’s suggested that one should take the help of an expert while drafting it. Here is a sample drafted by our experts. You can customise it as per your need.
Download this USA Attorney made Original Agreement for only $9.99