Freight Broker Agent Contract Template for United States

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Key Requirements PROMPT example:

Freight Broker Agent Contract

"I need a Freight Broker Agent Contract for our Texas-based logistics company that will bring on five independent agents, with specific territory restrictions for the Southeast region and a graduated commission structure starting at 50% for the first $100,000 in revenue, effective March 1, 2025."

Document background
The Freight Broker Agent Contract is essential for transportation companies operating in the United States that utilize independent agents to facilitate freight arrangements. This document is required when a licensed freight broker wants to expand their business through independent agents while maintaining compliance with FMCSA regulations and state laws. The contract defines the agent's authority to arrange transportation services, establishes commission structures, and outlines compliance requirements including insurance, bonding, and regulatory obligations. It's particularly important given the strict regulatory environment in the U.S. transportation sector.
Suggested Sections

1. Parties: Identification of the broker company and agent, including legal names and addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including industry-specific terminology

4. Scope of Services: Detailed description of agent's duties and responsibilities in freight brokerage operations

5. Independent Contractor Status: Clarification of agent's status as an independent contractor and related implications

6. Compensation: Commission structure, payment terms, and calculation methods

7. Compliance Requirements: Regulatory compliance obligations, licensing requirements, and FMCSA regulations

8. Term and Termination: Duration of agreement, renewal terms, and conditions for termination

9. Confidentiality: Protection of confidential information and trade secrets

10. Insurance and Bonding: Required insurance coverage and surety bond requirements

Optional Sections

1. Territory Restrictions: Geographic limitations on agent's operations and service area

2. Performance Metrics: Specific KPIs, performance standards, and evaluation criteria

3. Training Requirements: Required training programs, certifications, and ongoing education requirements

4. Non-Compete Provisions: Restrictions on competitive activities during and after the agreement term

5. Marketing and Branding: Guidelines for use of broker's brand and marketing materials

Suggested Schedules

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, calculations, and payment schedules

2. Schedule B - Operating Procedures: Standard operating procedures, protocols, and workflow requirements

3. Schedule C - Insurance Requirements: Specific insurance coverage requirements, minimum limits, and documentation

4. Schedule D - Territory Map: Geographic territory specifications and service area boundaries

5. Schedule E - Compliance Checklist: Checklist of required licenses, permits, and regulatory compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

FMCSA Regulations: 49 CFR Part 371 and related broker regulations, including requirements for broker licensing, registration, and MAP-21 compliance requirements

Transportation Law: Federal transportation laws including 49 U.S.C. �� 13102 (definitions and standards) and 49 U.S.C. �� 14916 (unlawful brokerage activities)

Interstate Commerce Regulations: Interstate Commerce Commission Termination Act and Surface Transportation Board requirements governing interstate transportation

State Transportation Laws: State-specific requirements for freight brokers, including licensing requirements and state bond requirements

Employment/Independent Contractor Laws: Fair Labor Standards Act (FLSA), IRS guidelines for independent contractor classification, and state-specific independent contractor regulations

Insurance Requirements: Mandatory insurance requirements including cargo insurance, general liability insurance, and surety bond requirements ($75,000 minimum)

Contract Law: Uniform Commercial Code (UCC), state-specific contract laws, and statute of frauds requirements governing contractual relationships

Privacy and Data Protection: Requirements for data protection, confidentiality obligations, and trade secrets protection in transportation contracts

Payment and Financial Regulations: Truth in Lending Act, Electronic Funds Transfer Act, and state-specific payment regulations governing financial transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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