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Value Added Reseller Agreement
I need a Value Added Reseller Agreement for a company that will distribute our software products in New Zealand, with terms that include a 12-month renewable contract, minimum quarterly sales targets, and provisions for marketing support and training. The agreement should also outline the reseller's responsibilities for customer support and compliance with our brand guidelines.
What is a Value Added Reseller Agreement?
A Value Added Reseller Agreement lets businesses legally resell products after adding their own improvements or services. For example, a tech company might bundle software with training, customization, and local support before selling it to Kiwi customers.
Under NZ's Fair Trading Act and Commerce Act, these agreements protect both parties by spelling out crucial details like pricing, territory rights, and intellectual property rules. They're especially common in IT, manufacturing, and telecommunications sectors, where resellers often enhance imported products to meet local market needs and compliance requirements.
When should you use a Value Added Reseller Agreement?
Use a Value Added Reseller Agreement when you're planning to enhance and resell another company's products in New Zealand. This is essential if you'll be adding services, customization, or local support to imported software, hardware, or manufactured goods before selling them to end customers.
The agreement becomes crucial when you need to protect your business interests, define territory rights, and comply with NZ consumer protection laws. It's particularly important when dealing with exclusive distribution rights, setting price margins, or establishing warranty responsibilities - especially in tech and manufacturing sectors where product modifications are common.
What are the different types of Value Added Reseller Agreement?
- Reseller Software License: Focuses specifically on software distribution rights, including technical support obligations and end-user license terms under NZ law.
- Software License Reseller Agreement: More comprehensive agreement covering broader aspects like marketing rights, performance targets, and territory exclusivity for software resellers.
- Industry-Specific VAR Agreements: Tailored versions for hardware, telecommunications, or manufacturing sectors with specialized terms.
- Territory-Based Agreements: Modified to address specific regional requirements and distribution rights within different parts of New Zealand.
Who should typically use a Value Added Reseller Agreement?
- Original Manufacturers: Companies that create products and want to expand their reach through value-added distribution channels in NZ
- Value Added Resellers: Businesses that enhance products with additional features, services, or local support before reselling
- Corporate Lawyers: Draft and review agreements to ensure compliance with NZ Fair Trading Act and Commerce Act
- Sales Directors: Negotiate terms, territories, and pricing structures within the agreement
- Compliance Officers: Monitor adherence to agreement terms and maintain necessary documentation for regulatory requirements
How do you write a Value Added Reseller Agreement?
- Product Details: List all products, services, and value-added components you'll offer under NZ consumer law
- Territory Rights: Define your specific sales regions and any exclusivity arrangements within New Zealand
- Pricing Structure: Document wholesale costs, markup percentages, and minimum advertised prices
- Support Terms: Outline warranty obligations, technical support responsibilities, and service level agreements
- Performance Metrics: Set clear sales targets, reporting requirements, and review periods
- Compliance Check: Our platform ensures your agreement meets all NZ legal requirements while using clear, enforceable language
What should be included in a Value Added Reseller Agreement?
- Parties & Scope: Clear identification of all parties and detailed description of products and value-added services
- Territory Rights: Specific geographical boundaries and any exclusivity provisions within NZ
- Pricing Terms: Payment structures, margins, and minimum pricing requirements under Fair Trading Act
- IP Protection: Clear statements on intellectual property ownership and usage rights
- Quality Standards: Minimum service levels and product quality requirements
- Term & Termination: Agreement duration, renewal options, and exit conditions
- Compliance Notice: Our platform automatically includes all these essential elements in compliance with NZ law
What's the difference between a Value Added Reseller Agreement and an Agency Agreement?
A Value Added Reseller Agreement differs significantly from an Agency Agreement in several key aspects, though both involve selling products on behalf of another company. Let's explore the main differences that matter under New Zealand law:
- Ownership and Risk: VARs purchase products outright and take ownership before resale, while agents never own the products they sell
- Modification Rights: VARs can modify, enhance, or bundle products with additional services; agents must sell products as-is
- Pricing Control: VARs set their own prices and margins, while agents typically work on commission with manufacturer-set prices
- Legal Liability: VARs assume direct responsibility for product warranties and customer support, whereas agents generally pass liability back to the manufacturer
- Business Independence: VARs operate as independent businesses with their own branding, while agents represent the manufacturer directly
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