The Direct Selling Agreement is essential for companies operating direct selling business models in New Zealand. It establishes the legal framework for engaging independent contractors to sell products or services directly to consumers. The agreement is designed to comply with New Zealand's regulatory requirements, including fair trading practices, consumer protection, and independent contractor relationships. This document is crucial when a company wants to expand its distribution through direct sellers, protecting both the company's interests and ensuring clear operational guidelines for the direct sellers. The agreement covers commission structures, territory rights, product handling, compliance requirements, and termination provisions, while maintaining alignment with New Zealand's legal framework for direct selling operations.
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1. Parties: Identification of the company and the direct seller, including full legal names and addresses
2. Background: Context of the agreement, nature of the business, and general purpose of the arrangement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Appointment and Status: Appointment of direct seller and clear statement of independent contractor status
5. Term: Duration of the agreement, including commencement date and renewal provisions
6. Direct Seller Obligations: Core responsibilities including sales conduct, reporting, compliance with laws and company policies
7. Company Obligations: Company's commitments regarding product supply, support, and training
8. Products and Pricing: Details about authorized products, pricing policies, and inventory management
9. Territory and Exclusivity: Defined sales territory and any exclusivity arrangements
10. Commissions and Payment: Commission structure, calculation methods, payment terms, and conditions
11. Compliance and Training: Requirements for compliance with laws, regulations, and company policies
12. Intellectual Property: Usage rights and restrictions regarding company trademarks and materials
13. Confidentiality: Protection of confidential information and trade secrets
14. Termination: Grounds for termination, notice requirements, and consequences
15. Post-Termination Obligations: Obligations and restrictions after agreement ends
16. General Provisions: Standard legal provisions including notices, assignment, governing law
1. Minimum Performance Requirements: Include when the company wants to set specific sales targets or performance metrics
2. International Operations: Required when direct seller may operate in multiple countries
3. Downline Organization: Include for multi-level marketing structures with recruitment provisions
4. Product Returns and Buyback: Include detailed procedures for product returns and inventory buyback
5. Online Sales Provisions: Include when allowing online sales channels
6. Insurance Requirements: Include when requiring direct seller to maintain specific insurance coverage
7. Data Protection: Detailed section required when extensive personal data processing is involved
8. Dispute Resolution: Include specific arbitration or mediation procedures if desired
1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, bonuses, and calculation methods
2. Schedule 2 - Authorized Products: List of approved products and current wholesale/retail pricing
3. Schedule 3 - Territory Description: Detailed description or map of assigned sales territory
4. Schedule 4 - Company Policies: Key company policies and procedures for direct selling
5. Schedule 5 - Training Requirements: Required training programs and certification requirements
6. Appendix A - Code of Conduct: Specific rules and ethical standards for direct selling activities
7. Appendix B - Reporting Templates: Standard forms for sales reporting and commission calculations
8. Appendix C - Product Handling Guidelines: Procedures for product storage, handling, and quality maintenance
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