An authorized dealer agreement, also known as a dealership agreement, is a formal document that outlines the terms and conditions of a business relationship between a manufacturer or supplier and a dealer.

This agreement establishes the rights and responsibilities of both parties, including the dealer`s obligation to market and sell the supplier`s products according to certain standards, as well as the supplier`s commitment to provide support and training to the dealer.

To help you better understand what an authorized dealer agreement entails, we have provided a sample below:

Dealership Agreement Sample

This agreement is made between [Manufacturer/Supplier Name], a [State] corporation, with offices at [Address], and [Dealer Name], a [State] corporation, with offices at [Address], collectively the “Parties.”

1. Purpose

The Parties agree to enter into this agreement to establish a business relationship whereby [Dealer Name] will market and sell [Manufacturer/Supplier Name]`s products in accordance with the terms and conditions outlined in this agreement.

2. Appointment and Termination

2.1 Appointment: [Manufacturer/Supplier Name] appoints [Dealer Name] as an authorized dealer for [Manufacturer/Supplier Name]`s products as specified in Exhibit A attached to this agreement.

2.2 Termination: Either party may terminate this agreement with written notice if the other party fails to comply with any of the terms or conditions of this agreement.

3. Product Sales and Promotion

3.1 Sales: [Dealer Name] agrees to use its best efforts to market and sell [Manufacturer/Supplier Name]`s products in accordance with the marketing and sales guidelines provided by [Manufacturer/Supplier Name].

3.2 Promotion: [Dealer Name] agrees to promote [Manufacturer/Supplier Name]`s products in a manner that is consistent with [Manufacturer/Supplier Name]`s brand and reputation.

4. Training and Support

4.1 Training: [Manufacturer/Supplier Name] agrees to provide [Dealer Name] with training on the use and maintenance of [Manufacturer/Supplier Name]`s products.

4.2 Support: [Manufacturer/Supplier Name] agrees to provide [Dealer Name] with technical support and assistance as needed to ensure that [Dealer Name] can effectively market and sell [Manufacturer/Supplier Name]`s products.

5. Compliance with Laws and Regulations

Both parties agree to comply with all applicable laws and regulations in connection with their performance under this agreement.

6. Confidentiality

Both parties agree to keep confidential any non-public information that they may receive from the other party as a result of this agreement.

7. Indemnification

Each party agrees to indemnify and hold harmless the other party from any claims, damages, or expenses arising from their breach of this agreement.

8. Governing Law

This agreement shall be governed by and construed in accordance with the laws of the State of [State].

9. Entire Agreement

This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between them.

In conclusion, an authorized dealer agreement is essential for a successful business relationship between a manufacturer or supplier and a dealer. While the specifics of the agreement may vary, it is important to ensure that all parties involved understand and agree to the terms and conditions outlined in the agreement.