The Sales Broker Agreement serves as the foundational document for establishing a formal relationship between companies and their external sales representatives in the United States. This agreement is essential when businesses want to expand their sales reach without directly employing additional staff. It typically includes detailed provisions about territory rights, commission structures, performance metrics, and compliance with both federal and state-specific broker regulations. The document is particularly crucial for maintaining clear boundaries in independent contractor relationships and protecting both parties' interests in the sales process.
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1. Parties: Identification and details of the principal company and the broker
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of broker appointment and authorized activities
5. Territory and Exclusivity: Geographical scope and exclusivity terms
6. Commission Structure: Payment terms, rates, and calculation methods
7. Term and Termination: Duration and conditions for ending the agreement
1. Non-Compete: Restrictions on competitive activities during and after the agreement term
2. Training Requirements: Specific training obligations and ongoing educational requirements
3. Marketing Support: Terms regarding marketing materials and support provided by the principal
1. Commission Schedule: Detailed breakdown of commission rates and structures
2. Territory Map: Geographical definition of broker's territory
3. Product List: List of products/services broker is authorized to sell
4. Performance Metrics: Specific targets and evaluation criteria for the broker
Relevant legal definitions
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