The Co-Brokerage Agreement Between Licensed Transportation Brokers is essential when two FMCSA-licensed transportation brokers wish to collaborate in arranging freight transportation services. This document becomes necessary when brokers want to share resources, expand their service offerings, or combine their carrier networks while maintaining separate business entities. It addresses crucial aspects such as commission splitting, operational procedures, licensing requirements, insurance obligations, and regulatory compliance under U.S. federal and state laws. The agreement helps prevent disputes by clearly defining roles, responsibilities, and financial arrangements while ensuring compliance with FMCSA regulations and industry standards.
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1. Parties: Identifies the licensed transportation brokers entering into the agreement
2. Background/Recitals: States the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Agreement: Outlines the nature of the co-brokerage relationship and services
5. Licensing and Compliance: States requirements for maintaining proper licenses and regulatory compliance
6. Commission Structure: Details the split of commissions and payment terms
7. Operational Procedures: Defines how the parties will work together operationally
8. Insurance Requirements: Specifies required insurance coverage and limits
9. Term and Termination: Defines duration and termination conditions
1. Non-Compete: Restricts competition between parties - used when parties want to protect their customer relationships
2. Territory Restrictions: Defines geographical limitations - used when operations are limited to specific regions
3. Technology Integration: Specifies systems integration requirements - used when parties use different software platforms
4. Performance Metrics: Establishes KPIs and performance standards - used when specific performance levels need to be maintained
1. Commission Schedule: Detailed breakdown of commission calculations and examples
2. Operating Procedures Manual: Detailed procedures for day-to-day operations
3. Insurance Certificates: Copies of required insurance documentation
4. Broker Licenses: Copies of current broker licenses
5. Service Level Agreement: Detailed performance standards and metrics
Relevant legal definitions
Agreement
Applicable Laws
Broker Authority
Business Day
Carrier
Carrier Agreement
Co-Brokerage Services
Commission
Confidential Information
Customer
Effective Date
FMCSA
Force Majeure Event
Freight Charges
Initial Term
Insurance Requirements
Intellectual Property Rights
Load
Operating Territory
Payment Terms
Performance Metrics
Primary Broker
Quick Pay
Regulatory Compliance
Secondary Broker
Services
Shipper
Term
Territory
Transportation Services
USC 49
Working Hours
Clauses
Definitions and Interpretation
Scope of Services
Licensing and Compliance
Commission Structure
Payment Terms
Operating Procedures
Carrier Management
Insurance Requirements
Representations and Warranties
Confidentiality
Non-Solicitation
Non-Competition
Intellectual Property
Data Protection
Liability and Indemnification
Force Majeure
Term and Termination
Dispute Resolution
Governing Law
Assignment
Amendment and Modification
Notices
Regulatory Compliance
Record Keeping
Audit Rights
Performance Standards
Territory Restrictions
Relationship of Parties
Severability
Entire Agreement
Relevant Industries
Relevant Teams
Relevant Roles
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