Document background
The Dealer Franchise Agreement is a crucial document used when a business wants to expand its distribution network through authorized dealers while maintaining control over brand representation and product distribution. This agreement, governed by German law, establishes the framework for a long-term business relationship between the franchisor (brand owner) and the dealer. It is particularly important in industries where product quality, customer service, and brand reputation are paramount. The document addresses key aspects required under German commercial law and EU regulations, including territory rights, performance standards, training requirements, and compliance obligations. The agreement balances the franchisor's need to maintain brand consistency and quality standards with the dealer's need for operational autonomy and business viability. It typically includes comprehensive operational guidelines, financial terms, and reporting requirements, making it essential for businesses establishing or expanding their dealer networks in Germany.
