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Car Referral Fee Agreement Template for Canada

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Key Requirements PROMPT example:

Car Referral Fee Agreement

"I need a Car Referral Fee Agreement for my luxury car dealership in Ontario, establishing a 2% referral fee for successful sales, with quarterly payments and exclusivity requirements for referral partners who must be licensed automotive brokers."

Document background
The Car Referral Fee Agreement is essential for businesses operating in the Canadian automotive sector who wish to formalize referral relationships and ensure compliance with applicable laws. This agreement is typically used when car dealerships, brokers, or automotive retailers want to establish a network of referral partners who can direct potential customers to their business. The document outlines specific terms for referral fees, defines what constitutes a qualified referral, and establishes clear processes for tracking and compensating successful referrals. It includes provisions to comply with provincial motor vehicle dealer regulations, consumer protection laws, and privacy legislation, while protecting both parties' interests. The agreement is particularly relevant in today's automotive market where digital platforms and third-party referrals play an increasingly important role in vehicle sales.
Suggested Sections

1. Parties: Identification of the referrer, dealer/recipient, and their respective business details

2. Background: Context of the agreement and general purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement including 'Successful Referral', 'Referral Fee', 'Qualified Lead', etc.

4. Referral Process: Detailed description of how referrals should be made and documented

5. Qualification Criteria: Specific criteria that constitute a valid referral eligible for payment

6. Fee Structure: Amount or percentage of referral fees and calculation method

7. Payment Terms: Timing and method of payment, including any conditions precedent

8. Obligations of Parties: Responsibilities and duties of both the referrer and dealer

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Confidentiality: Protection of confidential information shared during the referral process

11. Representations and Warranties: Basic warranties about authority to enter agreement and compliance with laws

12. Governing Law: Specification of applicable Canadian jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Non-Compete: Restrictions on referrer's ability to refer to other dealers - used when exclusivity is required

2. Marketing Guidelines: Rules for how the referrer can market or promote the dealer - included when referrer will actively promote

3. Training Requirements: Specific training or certification requirements for referrers - used in complex sales environments

4. Insurance Requirements: Insurance obligations of either party - included when referrer takes active role in sales process

5. Data Protection: Detailed procedures for handling customer data - used when significant personal information is shared

6. Volume Incentives: Additional compensation for hitting certain referral targets - used in high-volume relationships

7. Dispute Resolution: Detailed procedures for resolving disputes - included for high-value or complex arrangements

Suggested Schedules

1. Schedule A - Fee Schedule: Detailed breakdown of referral fees, including any tiered structure or special cases

2. Schedule B - Referral Process Workflow: Step-by-step process flow for making and tracking referrals

3. Schedule C - Approved Marketing Materials: Templates or guidelines for any approved marketing or promotional materials

4. Appendix 1 - Referral Form Template: Standard form to be used for submitting referrals

5. Appendix 2 - Reporting Template: Standard format for periodic referral activity reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































Clauses






























Relevant Industries

Automotive

Retail

Financial Services

Insurance

Transportation

Fleet Management

Professional Services

E-commerce

Consulting

Relevant Teams

Legal

Sales

Business Development

Compliance

Finance

Operations

Marketing

Partnerships

Contract Administration

Risk Management

Relevant Roles

Sales Manager

Business Development Manager

Dealer Principal

Finance Manager

Compliance Officer

Legal Counsel

Operations Manager

Marketing Director

Fleet Sales Manager

Partnership Manager

Business Development Representative

Channel Sales Manager

Automotive Broker

Contract Administrator

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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