Navigating Reseller Agreements

06/09/2023

29 min

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Navigating reseller agreements can be a daunting task for entrepreneurs, business owners, and corporate executives. Reseller agreements are legally binding documents between two parties that specify the rights and responsibilities of both parties to sell goods or services of one party to another. Without a clear set of rules set out in such an agreement, businesses can be exposed to legal disputes, non-payment of goods or services and other financial losses.

To help take the guesswork out of drafting such an agreement, ��Ƶ is providing free access to its open source legal template library – the world’s largest. With millions of datapoints teaching ��Ƶ’s AI system what a market-standard reseller agreement looks like, anyone can quickly draft and customize high-quality legal documents without consulting with a lawyer.

So what should you keep in mind when creating your own reseller agreement? First it’s important to understand your rights and obligations as outlined in the contract. You should also be aware of any applicable laws or regulations that may affect the agreement. Furthermore, it’s essential that you read the document carefully to ensure there are no misunderstandings between both parties involved – if you don’t understand something make sure you ask questions! Finally, if needed get advice from qualified professionals who specialize in this area – don’t be afraid to negotiate for better terms and conditions if necessary too!

Having a comprehensive reseller agreement in place is paramount for protecting businesses from costly risks down the line - following these tips will help ensure your relationship with your supplier remains successful long into the future. To learn more about how ��Ƶ can facilitate this process today visit our website for step by step guidance on how to best navigate reseller agreements without having an account with us at any time!

Definitions

Roles and Responsibilities: The duties and obligations of each party in the agreement.
Timeline: A set of dates and deadlines for meeting the agreed upon goals.
Researching: Investigating and collecting information.
Approvals: Official permission or acceptance.
Signatures: Written authorization or consent.
Terms and Conditions: The rules and regulations that parties must follow in an agreement.
Negotiating: Discussing and reaching an agreement.
Drafting: Preparing a written document.
Monitoring: Observing and keeping track of.
Disputes: Conflicts or disagreements.
Enforcing: Making sure that the rules are followed.
Risks: Potential danger or harm.
Revisions: Changes made to a document.
Finalizing: Completing the agreement.
Terminating: Ending the agreement.
Documenting: Recording and storing information.
Evaluating: Assessing the effectiveness of something.

Establishing the Goals of the Reseller Agreement
Identifying the desired outcome of the agreement
Determining the roles and responsibilities of each party
Establishing a timeline for completion
Identifying the Parties Involved in the Agreement
Researching the parties involved
Reviewing any existing contracts between the parties
Obtaining the necessary approvals and signatures
Reviewing the Terms of the Agreement
Reviewing the proposed terms and conditions
Negotiating any changes or additions to the agreement
Drafting the final version of the agreement
Setting Up a Reseller Agreement Process
Establishing a process for monitoring compliance
Developing a plan for resolving disputes or enforcing the terms of the agreement
Creating a communication plan for regularly updating the parties
Assessing the Potential Risks of the Reseller Agreement
Identifying any potential risks to the parties involved
Estimating the potential financial impact of the agreement
Determining the best course of action to address any identified risks
Negotiating the Agreement and Finalizing the Deal
Discussing the terms of the agreement with all parties
Making any necessary revisions to the agreement
Obtaining all necessary signatures to finalize the deal
Managing the Reseller Agreement
Monitoring compliance with the terms of the agreement
Resolving any disputes that arise
Keeping the parties informed of any changes to the agreement
Terminating the Reseller Agreement
Notifying all parties of the termination
Reviewing the terms of the agreement to ensure an orderly termination
Taking any necessary steps to protect the interests of the parties
Documenting the Reseller Agreement
Collecting all necessary documentation related to the agreement
Storing the documents in a secure and easily accessible location
Establishing a process for regularly reviewing the documents
Evaluating the Reseller Agreement
Assessing the performance of the agreement
Identifying any areas for improvement
Making changes to the agreement as needed

Get started

Establishing the Goals of the Reseller Agreement

Identify the purpose of the reseller agreement
Evaluate the goals and objectives of both parties
Determine the expectations for the agreement
Establish the roles and responsibilities of each party

Once you have identified the purpose of the agreement, evaluated the goals and objectives of both parties, determined the expectations for the agreement, and established the roles and responsibilities of each party, you can check this step off your list and move on to the next step.

Identifying the desired outcome of the agreement

Clarify the desired outcome of the reseller agreement and document it
Outline what you need to gain from the agreement, such as:
Access to new markets
Increased sales
Increased customer loyalty
Reduced overhead
Make sure the desired outcome is measurable, so you can track the progress of the agreement
Once you have identified and documented the desired outcome of the agreement, you can move on to the next step.

Determining the roles and responsibilities of each party

Clearly define the roles and responsibilities of each party in the agreement
Ensure that the agreement is mutually beneficial to each party
Outline the terms and conditions that each party must abide by
Specify the services or product that the reseller will provide
Address any additional obligations that each party may have
Determine the duration of the agreement
Identify how the reseller will be compensated

How you’ll know when you can check this off your list and move on to the next step:

Once you have clearly outlined all of the roles, responsibilities, terms, conditions, services, product, obligations, duration, and compensation for each party, you can move on to the next step, which is establishing a timeline for completion.

Establishing a timeline for completion

Outline the timeline for the agreement to be completed, including the date of execution, when it will take effect, and when it will expire.
Set milestones and deadlines for each step in the process.
Establish penalties for missed deadlines.
Once the timeline has been established and agreed upon, review it with both parties to ensure they understand the timeline and the consequences of not adhering to it.

How you’ll know when you can check this off your list and move on to the next step:

When both parties have reviewed and agreed to the timeline and its consequences, you can move on to the next step of identifying the parties involved in the agreement.

Identifying the Parties Involved in the Agreement

Contact the other party to the agreement to determine who is involved with the reseller agreement
Ask for contact information for each party, including company name, address, phone number, and email address
Confirm that each party is willing to enter into a reseller agreement
Verify that each party is legally authorized to enter into such an agreement
When you have obtained the necessary information and verified each party’s authority, you can check off this step and move on to the next step.

Researching the parties involved

Research the parties involved in the agreement to gain a better understanding of their background, history, and motivation for entering the agreement.
Research the parties’ financials and customer base to ensure they have the capacity to fulfill the agreement.
Evaluate the parties’ reputation and standing in the industry to determine if they have a good track record and are likely to honor their agreement obligations.
Ask questions about the parties’ experience in the reseller industry to ensure they have the expertise to manage the agreement effectively.
You will know when you have completed the research step when you have a clear understanding of the parties involved in the agreement and their capacity to fulfill the agreement.

Reviewing any existing contracts between the parties

Analyze any existing contract between the parties to determine what the existing agreement includes
Consider any changes that need to be made to the existing contract
Ensure that all the parties involved understand and agree to the terms of the contract
Make sure that all parties are in compliance with the terms of the contract
When all parties are in agreement and have signed the contract, you can check this off your list and move on to the next step.

Obtaining the necessary approvals and signatures

Contact the relevant parties involved in the reseller agreement to obtain their signatures and approvals
Ensure each party has read and approved the agreement
Review the agreement with each party to ensure they are in agreement with the terms
Collect the necessary signatures from all parties
Once all signatures have been collected, the reseller agreement will be finalized
You can then move on to reviewing the Terms of the Agreement

Reviewing the Terms of the Agreement

Carefully read through the reseller agreement and make sure that all the terms and conditions are clear and understood
Pay close attention to the payment and cost structure, any clauses that may require additional payment or fees, and any other contractual obligations
Make sure that all the information you provided is correct and up to date, and that there are no typos or errors
Once you’ve reviewed the document and all terms and conditions seem to be in order, you can check this off your list and move on to the next step.

Reviewing the proposed terms and conditions

Carefully read through the agreement and make sure you understand all of its clauses
Highlight any areas that require clarification and research any unfamiliar terms
Make sure all the details supplied by the reseller are accurate
Take note of any warranties or guarantees provided
Look out for any restrictions, limitations or exclusions
Make sure you are aware of the payment terms, delivery times and any other services included in the agreement
Check for any potential legal or financial liabilities
When you have finished reviewing all the terms and conditions, you should be able to decide whether the agreement is suitable for your needs and be able to move on to the next step.

Negotiating any changes or additions to the agreement

Make a list of the changes or additions you would like to be included in the agreement
Contact the other party to discuss the changes or additions
Negotiate the changes and additions to the agreement with the other party
Reach a consensus on any changes or additions to the agreement
Once both parties have agreed to all changes or additions, you can check this off your list and move on to the next step.

Drafting the final version of the agreement

Review and revise the agreement to ensure that the terms and conditions are acceptable to both parties.
Ensure that all required signatures are obtained.
Create copies of the agreement for both parties.
Once all parties have agreed to the final version of the agreement, you can check this off your list and move on to the next step.

Setting Up a Reseller Agreement Process

Establish a process for communication between all involved parties throughout the agreement process
Assign roles and responsibilities to each party to ensure smooth operations
Set up a timeline and expectations for the agreement process
Determine any needed additional resources or personnel to complete the agreement
Outline the methods and procedures that will be used to monitor progress and compliance with the agreement
Once all of the above have been completed, the Reseller Agreement process can be considered set up and ready to go.

Establishing a process for monitoring compliance

Establish a process for monitoring compliance with the reseller agreement, including periodic reviews of the reseller’s activities.
Develop a checklist of the key elements of the agreement that must be monitored and documented.
Assign responsibility for monitoring compliance to appropriate staff in your organization.
Document the steps taken to ensure compliance or any discrepancies found.
Determine how to address any discrepancies found, including when to escalate the issue to legal or other decision-makers.

Once you have established a process for monitoring compliance, you can move on to the next step: Developing a plan for resolving disputes or enforcing the terms of the agreement.

Developing a plan for resolving disputes or enforcing the terms of the agreement

Identify any potential dispute resolution mechanisms spelled out in the agreement
Outline potential scenarios and how you would handle them
Consider which party should take the lead in resolving disputes
Determine whether or not to involve a mediator or an arbitrator
Establish how long the dispute resolution process should take
Determine how to enforce the terms of the agreement

Once you have developed a plan for resolving disputes or enforcing the terms of the agreement, you can move on to the next step in the guide.

Creating a communication plan for regularly updating the parties

Set up a timeline for both parties to provide updates on the progress of the agreement, such as monthly or quarterly.
Create a communication method that works for both parties, such as email, phone calls, or in-person meetings.
Establish a protocol to use if either party makes changes to the agreement, such as when the reseller’s product or service offering changes.
Agree on a method to track progress and changes to the agreement, such as logs or spreadsheets.
Once all aspects of the communication plan have been agreed upon, both parties should sign-off on the plan.

When all of these steps have been completed, you can check off this step and move on to the next step of assessing the potential risks of the reseller agreement.

Assessing the Potential Risks of the Reseller Agreement

Examine the agreement for any legal risks, such as those related to intellectual property rights or antitrust laws
Identify any potential liabilities, such as those related to warranties or delivery of goods
Analyze the agreement for any risks related to the financial aspects, such as pricing, payment terms, and taxes
Assess any potential risks related to the performance of the parties involved, such as delivery deadlines or quality standards
Review the agreement for any risks associated with data privacy, such as those related to the sharing of personal information

You can check this off your list when you have identified and analyzed the potential risks in the reseller agreement.

Identifying any potential risks to the parties involved

Research the reseller agreement thoroughly, including the language of the agreement and the potential implications of any clauses
Identify any potential risks for the parties involved such as financial risks, contractual risks, and legal risks
Analyze the potential implications of the agreement on all parties, including potential costs, liabilities, and benefits
Reach out to legal counsel for advice and assistance in identifying risks
Once you have identified all potential risks, you can move on to the next step.

Estimating the potential financial impact of the agreement

Gather financial and market data relevant to the reseller agreement
Analyze the data and project the short-term and long-term financial impact of the agreement
Consider the costs associated with the agreement, such as any upfront fees and ongoing costs
Consider any potential income that may be generated from the agreement, such as revenue from sales
Compare the financial impact of the agreement to other potential reseller agreements

Once you have estimated the potential financial impact of the reseller agreement and compared it to other potential reseller agreements, you can check this off your list and move on to the next step.

Determining the best course of action to address any identified risks

Review the risks identified in the previous step and assess whether any of them need to be addressed
Develop a list of potential strategies for addressing each risk
Evaluate each strategy for effectiveness, cost, and potential impact on the agreement
Choose the strategies that are the most effective and cost-efficient
Define action items and assign responsibility
Communicate the action plan to all relevant parties
Monitor implementation of the action plan
When the action plan is complete, check it off your list and proceed to the next step of negotiating the agreement and finalizing the deal.

Negotiating the Agreement and Finalizing the Deal

Collaborate with all parties to reach an agreement on the terms and conditions of the reseller agreement
Compile all the agreed upon terms and conditions into a single document
Ensure that any company policies, such as intellectual property or data protection policies, are reflected in the agreement
Have all parties sign the agreement to complete the negotiation process
When all parties have signed the agreement, you will know the process is complete and you can move on to the next step.

Discussing the terms of the agreement with all parties

Ensure all parties involved in the agreement are present and ready to discuss the terms
Have a clear understanding of the provisions and how they apply to all parties
Ask questions and express concerns if anything is unclear
Make sure all parties are in agreement on the terms of the agreement
Document the agreement, and have it signed by all parties
How you’ll know when you can check this off your list and move on to the next step: Once all parties have signed the agreement, you can move onto making any necessary revisions to the agreement.

Making any necessary revisions to the agreement

Carefully review the agreement in its entirety to ensure that all the necessary elements are included
Make any necessary revisions to the agreement, ensuring that all parties agree to the changes
Make sure that all changes are documented and initialed as necessary for proof of agreement
Once all changes are agreed upon and documented, you will know that this step is complete and you can proceed to obtaining all necessary signatures to finalize the deal.

Obtaining all necessary signatures to finalize the deal

Collect the signatures of all parties involved in the reseller agreement.
Ensure that all signatures are valid (i.e. notarized if required).
Ensure that all signatures are legal and binding on the parties.
Keep a copy of the signed document for your own records.
Once all signatures are collected and verified, you can move on to managing the reseller agreement.

Managing the Reseller Agreement

Ensure that the reseller understands their obligations under the agreement and is taking all necessary steps to comply with them
Monitor the reseller’s performance and make sure they are meeting the targets and goals outlined in the agreement
Make sure that the reseller is paying their fees in a timely manner
Resolve any issues that arise promptly and in accordance with the agreement
Communicate regularly with the reseller and address any concerns they may have
Make any necessary changes to the reseller agreement in a timely manner

You can check this step off your list when you have completed the above tasks and you have verified that the reseller is adhering to the terms of the agreement.

Monitoring compliance with the terms of the agreement

Review the agreement to ensure that each party is meeting the terms of the contract
Monitor any changes to the terms of the agreement and ensure that those changes are honored
Regularly review the performance of the reseller to ensure that they are meeting the agreed-upon terms
Track any outstanding payments from the reseller to ensure that any payments owed are paid on time
Make sure that the reseller is providing the services or products as outlined in the agreement
When all of the above steps have been completed, the compliance with the terms of the agreement can be considered successful.

Resolving any disputes that arise

Seek legal advice if necessary to resolve any disputes that may arise between parties
Attempt to resolve any issues that may arise through discussion and negotiation
Refer to the terms of the agreement to ensure that any resolution reflects the agreement and is legally binding
Utilize dispute resolution methods such as mediation, arbitration, or a court of law if necessary
When a resolution has been agreed upon and signed by both parties, this step is completed.

Keeping the parties informed of any changes to the agreement

Ensure that both parties are aware of any changes to the agreement before they are implemented.
Agree on the best way to communicate changes to the agreement (e.g. in writing, email, etc.).
Make sure that both parties are kept up-to-date on any changes to the agreement.
Discuss the potential impact of any changes to the agreement with both parties.
When any changes have been agreed upon, document them in writing and have both parties sign off on them.

You’ll know you can check this step off your list when both parties have agreed to the changes to the agreement and have signed off on them.

Terminating the Reseller Agreement

Notify all parties in writing of the termination of the Reseller Agreement
Include the date of the termination, the reason and any other relevant information
Ensure all parties sign off on the termination letter
Once all parties have signed off on the termination letter, the Reseller Agreement is officially terminated
You can check this off your list and move on to the next step once the termination letter is signed by all parties

Notifying all parties of the termination

Notify all parties of the termination in writing, via email or physical mail.
Make sure to include the official termination date to avoid confusion.
Make sure to keep copies of all correspondence in case of any future disputes.
Once all parties have been notified, and the notification has been acknowledged, you can check this off your list and move on to the next step of reviewing the terms of the agreement.

Reviewing the terms of the agreement to ensure an orderly termination

Review the original reseller agreement for provisions for termination, including any notice requirements and any remaining obligations
Check the agreement for specific language that may require additional steps to be taken, such as the return of any assets or equipment
Identify any obligations that must continue to be fulfilled after the agreement ends and any penalties that may be incurred if obligations are not fulfilled
Research any applicable state or federal laws that may apply to the termination of the agreement
Make sure all necessary steps are taken to ensure an orderly termination
Make sure all parties involved in the agreement are in agreement on the terms of the termination
Once all of the above has been completed, the agreement can be terminated
Check off this step and move on to the next step of notifying all parties of the termination.

Taking any necessary steps to protect the interests of the parties

Verify that the reseller agreement meets the legal requirements of the applicable jurisdiction.
Make sure that the reseller agreement contains provisions for the protection of confidential information and intellectual property.
Ensure that the agreement includes provisions for the protection of the interests of both parties in the event of a dispute.
Include provisions for the protection of the interests of both parties in the event of a breach of contract or breach of any of the terms and conditions of the agreement.
Include provisions for the protection of the interests of both parties in the event of a change in the ownership of either party.
Verify that the agreement includes provisions for the assignment of the agreement by either party.

How you’ll know when you can check this off your list and move on to the next step:

When all the necessary steps have been taken to ensure that the interests of both parties are protected, this step will be completed and you can move on to the next step.

Documenting the Reseller Agreement

Ensure all parties involved have reviewed and signed the reseller agreement.
Gather all necessary documents related to the agreement and keep them in a secure place.
Make sure to keep copies of all signatures, correspondence and other important documents related to the agreement.
Make note of the details of the agreement, such as the start and end dates, payment terms, and any other important details.
Once all documents are gathered and all parties have reviewed and signed the agreement, you can move on to the next step.