As businesses continue to expand, they often need support in selling and promoting their products. This is where Value-Added Resellers (VARs) come into play. VARs are companies that add value to a product or service before reselling it to customers. In order to protect both parties, it is imperative that a value-added reseller agreement is established.
A sample value-added reseller agreement should include the following components:
1. Introduction: This section should describe the purpose of the agreement and the parties involved.
2. Products: Here, the agreement should specify the products or services being resold by the VAR.
3. Exclusivity: If exclusivity is agreed upon, it should be clearly stated in this section. This means that the VAR is the sole reseller of the product in a particular region or industry.
4. Term and Termination: This section should outline the duration of the agreement and the conditions under which it can be terminated.
5. Pricing and Payment: The agreement should clearly state the pricing and payment terms for the products or services being resold.
6. Marketing and Promotion: The VAR is responsible for marketing and promoting the products and services being sold. This section should outline the marketing and promotion strategies to be used.
7. Intellectual Property: It is important to include a section that covers intellectual property rights. This ensures that both parties are aware of their rights and responsibilities regarding trademarks, copyrights, and patents.
8. Confidentiality: This section should address the confidentiality of any proprietary information shared between the two parties.
9. Dispute Resolution: In the event of any disputes, this section should outline the steps to be taken to resolve them.
10. Governing Law: This section should specify the governing law under which the agreement will be interpreted and enforced.
A well-crafted value-added reseller agreement is crucial for both parties involved in a reselling business relationship. It ensures that both parties are on the same page regarding important aspects such as products, payment, and promotion. It also establishes a framework for dispute resolution, which can avoid costly legal battles in the future.