This Direct Sales Agreement template is designed for use in New Zealand when establishing a formal relationship between a supplier/manufacturer and individuals or entities engaged in direct selling activities. The document is essential for businesses operating direct sales models, particularly those involving independent sales representatives or agents who sell products directly to consumers. It includes comprehensive provisions for territory allocation, commission structures, performance requirements, and compliance with New Zealand consumer protection laws. The agreement is particularly relevant for businesses expanding their direct sales networks or formalizing existing relationships with sales representatives. It incorporates necessary safeguards and obligations to protect both parties while ensuring compliance with New Zealand's commercial and consumer protection framework.
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1. Parties: Identification and details of the supplier/manufacturer and the direct seller
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Terms of appointment as direct seller and defined sales territory
5. Products and Pricing: Description of products to be sold and pricing structure
6. Orders and Delivery: Process for placing orders and delivery arrangements
7. Payment Terms: Payment conditions, commission structures, and payment timing
8. Obligations of the Supplier: Supplier's responsibilities including product supply, support, and training
9. Obligations of the Direct Seller: Direct seller's responsibilities including sales targets, reporting, and conduct
10. Compliance: Compliance with laws, regulations, and industry standards
11. Intellectual Property: Usage rights for trademarks, logos, and marketing materials
12. Confidentiality: Protection of confidential information and trade secrets
13. Term and Termination: Duration of agreement and termination provisions
14. Post-Termination: Obligations and restrictions after agreement ends
15. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Training and Support: Detailed provisions for training programs and ongoing support - include when comprehensive training is part of the business model
2. Marketing and Promotion: Specific marketing requirements and restrictions - include when marketing is a significant component
3. Performance Targets: Detailed sales targets and performance metrics - include for larger or more structured arrangements
4. Insurance: Specific insurance requirements - include when direct seller needs particular coverage
5. Data Protection: Detailed data handling requirements - include when significant customer data processing is involved
6. Non-Compete: Post-termination competition restrictions - include when protecting market position is crucial
7. Minimum Purchase Requirements: Minimum stock or purchase obligations - include when required by business model
1. Schedule 1 - Product List: Detailed list of products with specifications and pricing
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods
3. Schedule 3 - Territory Map: Geographical definition of the assigned sales territory
4. Schedule 4 - Performance Metrics: Specific targets and performance evaluation criteria
5. Schedule 5 - Marketing Guidelines: Approved marketing practices and brand usage guidelines
6. Appendix A - Order Forms: Standard forms and procedures for placing orders
7. Appendix B - Reporting Templates: Required formats for sales and performance reporting
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