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Direct Selling Agreement
1. Parties: Identification of the company and the direct seller, including full legal names and addresses
2. Background: Context of the agreement and brief description of the business model
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Status: Appointment of direct seller and explicit confirmation of independent contractor status
5. Territory and Products: Definition of authorized sales territory and products/services covered by the agreement
6. Direct Seller Obligations: Core responsibilities including sales practices, reporting, compliance with laws and company policies
7. Company Obligations: Company's commitments regarding product supply, training, and support
8. Compensation: Commission structure, payment terms, and calculation methods
9. Compliance and Training: Requirements for compliance with laws, regulations, and mandatory training
10. Product Orders and Inventory: Procedures for ordering, handling, and returning products
11. Intellectual Property: Usage rights and restrictions regarding company trademarks and materials
12. Confidentiality: Protection of confidential information and trade secrets
13. Data Protection: GDPR compliance and data handling requirements
14. Term and Termination: Duration of agreement and termination provisions
15. Post-Termination: Obligations and restrictions after agreement ends
16. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Minimum Performance Requirements: Include when the company requires minimum sales targets or activity levels
2. Downline Organization: Include for multi-level marketing structures to define rules for building and managing sales teams
3. International Operations: Include when direct seller may operate in multiple jurisdictions
4. E-commerce Provisions: Include when online sales are permitted
5. Product Returns and Buy-Back: Include detailed procedures for product returns and inventory buy-back if significant inventory is involved
6. Marketing Materials and Approval: Include when direct seller can create their own marketing materials
7. Insurance Requirements: Include when specific insurance coverage is required
8. Non-Compete Provisions: Include when restricting involvement with competing businesses
1. Schedule 1 - Products and Price List: Detailed list of authorized products and pricing structure
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and bonus schemes
3. Schedule 3 - Territory Description: Detailed description or map of authorized sales territory
4. Schedule 4 - Company Policies and Procedures: Key operational policies and compliance requirements
5. Schedule 5 - Marketing Guidelines: Approved marketing practices and materials
6. Schedule 6 - Data Processing Agreement: GDPR-compliant data processing terms
7. Schedule 7 - Training Requirements: Required training programs and certifications
8. Appendix A - Approved Marketing Materials: Templates and examples of authorized marketing materials
9. Appendix B - Product Handling Guidelines: Procedures for product storage, handling, and quality maintenance
Authors
Company
Direct Seller
Territory
Products
Commissions
Bonus
Customers
Marketing Materials
Confidential Information
Intellectual Property Rights
Personal Data
Data Protection Laws
GDPR
Sales Tools
Direct Selling
Cooling-off Period
Business Day
Effective Date
Force Majeure
Group Company
Independent Contractor
Initial Term
Minimum Performance Requirements
Net Sales
Order
Party/Parties
Personnel
Price List
Company Policies
Retail Price
Sales Report
Term
Termination Date
Trade Marks
Training Materials
Wholesale Price
Working Hours
Downline
Customer Database
Sales Support Materials
Promotional Materials
Company Website
Starter Kit
Commission Period
Payment Terms
Reporting Period
Quality Standards
Consumer
Independent Contractor Status
Territory Rights
Product Supply
Commission and Payment
Minimum Performance
Training and Support
Marketing and Promotion
Intellectual Property
Confidentiality
Data Protection
Non-Competition
Non-Solicitation
Compliance
Representations and Warranties
Record Keeping
Audit Rights
Indemnification
Limitation of Liability
Insurance
Force Majeure
Term and Termination
Post-Termination Obligations
Assignment
Notices
Entire Agreement
Severability
Governing Law
Dispute Resolution
Amendment
Consumer Protection
Product Returns
Inventory Management
Quality Control
Reporting Requirements
Code of Conduct
Anti-Corruption
Territory Exclusivity
Sales Targets
Product Pricing
Customer Service
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