Referral Fee Agreement Template for Denmark

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Key Requirements PROMPT example:

Referral Fee Agreement

I need a Referral Fee Agreement for my Danish software company that will be working with international technology consultants, including a tiered commission structure ranging from 10-25% based on deal size, with the agreement starting January 2025.

What is a Referral Fee Agreement?

This document is essential for businesses operating in Denmark that wish to formalize their referral relationships and ensure compliance with local regulations. A Referral Fee Agreement is typically used when a company wants to incentivize third parties to refer customers or business opportunities, establishing clear terms for compensation and responsibilities. The agreement needs to comply with Danish contract law, marketing regulations, data protection requirements (GDPR), and financial services regulations. It's particularly important in regulated industries where transparency in commercial relationships is mandatory. The document includes specific provisions for referral processes, fee structures, payment terms, confidentiality, and data protection, ensuring both parties understand their obligations and rights under Danish law.

What sections should be included in a Referral Fee Agreement?

1. Parties: Identification of the referrer and the company/entity receiving referrals, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, describing the business relationship and purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Successful Referral', 'Referral Fee', 'Referred Customer', etc.

4. Scope of Services: Detailed description of the referral services to be provided and any specific requirements or qualifications

5. Referral Process: Step-by-step process for making referrals, including methods of communication and required information

6. Fee Structure: Detailed breakdown of referral fees, calculation methods, and payment triggers

7. Payment Terms: Timeline and method of payment, including invoicing requirements and payment procedures

8. Obligations and Responsibilities: Specific duties of both parties, including quality standards and compliance requirements

9. Term and Termination: Duration of the agreement and conditions for termination

10. Confidentiality: Protection of confidential information shared between parties

11. Data Protection: GDPR compliance measures and data handling requirements

12. Non-Solicitation: Restrictions on soliciting employees or customers

13. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

What sections are optional to include in a Referral Fee Agreement?

1. Exclusivity: Used when the referrer is granted exclusive rights in specific territories or markets

2. Performance Targets: Include when setting minimum referral requirements or performance metrics

3. Training and Support: When the company provides specific training or resources to the referrer

4. Marketing Guidelines: Include when the referrer will be conducting marketing activities

5. Audit Rights: When regular auditing of referral activities is required

6. Insurance Requirements: Include when specific insurance coverage is required for the referrer

7. Dispute Resolution: Alternative dispute resolution procedures if preferred over standard court proceedings

What schedules should be included in a Referral Fee Agreement?

1. Fee Schedule: Detailed breakdown of fee structures, including any tiered pricing or bonus schemes

2. Referral Process Flowchart: Visual representation of the referral process and procedures

3. Required Referral Information Form: Template form for submitting referral information

4. Approved Marketing Materials: Pre-approved marketing content and guidelines

5. Data Processing Agreement: Required under GDPR for handling personal data in referrals

6. Service Level Agreement: Specific performance metrics and service standards

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

Relevant Industries

Professional Services

Financial Services

Technology and Software

Real Estate

Insurance

Consulting

Healthcare

Education and Training

Telecommunications

Business Services

Relevant Teams

Legal

Sales

Business Development

Compliance

Marketing

Finance

Operations

Partner Relations

Commercial

Relevant Roles

Business Development Manager

Sales Director

Channel Partnership Manager

Legal Counsel

Compliance Officer

Marketing Manager

Chief Revenue Officer

Partner Relations Manager

Account Executive

Operations Manager

Commercial Director

Business Partner Manager

Industries
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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