Co Brokerage Agreement Between Licensed Transportation Brokers Template for the United States

When you're a licensed transportation broker looking to expand your services or resources through collaboration with another broker, you need a Co Brokerage Agreement Between Licensed Transportation Brokers. This legal document establishes the framework for two separate FMCSA-licensed brokers to work together while maintaining their individual business entities and regulatory compliance obligations.

When do you need this document?

You need this agreement when you want to partner with another licensed transportation broker to share carrier networks, combine service offerings, or collaborate on specific freight transportation projects. This situation commonly arises when brokers seek to expand into new geographic markets, handle larger shipments that require multiple carriers, or offer specialized services outside their core expertise. The agreement is also essential when brokers want to maintain separate business operations while leveraging each other's resources and relationships. Additionally, you'll need this document when regulatory requirements or client demands necessitate collaboration between multiple licensed entities to complete transportation services effectively.

Key legal considerations

The commission structure represents one of the most critical aspects of your co-brokerage agreement, requiring clear definition of how revenues will be split between participating brokers. You must establish detailed procedures for handling customer relationships, determining which broker serves as the primary contact, and managing potential conflicts when both brokers have existing relationships with the same customers or carriers. Insurance and liability provisions require careful attention, as you need to specify how coverage applies when multiple brokers are involved in a single transaction. The agreement must address confidentiality and non-compete clauses to protect each broker's proprietary information, customer lists, and carrier relationships. Additionally, you should include termination procedures that specify how ongoing commitments will be handled and how commission payments will be resolved if the partnership ends.

Legal requirements in United States

Under United States federal law, both brokers must maintain active FMCSA operating authority and comply with 49 CFR Part 371 regulations governing broker operations. Your agreement must ensure that both parties maintain the required surety bond or trust fund as specified under MAP-21 legislation, currently set at $75,000 for freight brokers. The document must address record-keeping requirements mandated by FMCSA regulations, specifying which broker will maintain transaction records and how information will be shared for compliance purposes. You must ensure that all commission arrangements comply with Interstate Commerce Commission Termination Act provisions and do not violate Sherman Antitrust Act restrictions on anti-competitive practices. The agreement should specify how each broker will maintain their separate financial responsibility requirements and ensure that co-brokerage activities do not compromise individual licensing or bonding obligations. Additionally, you must address state-specific licensing requirements if operations will occur across multiple jurisdictions within the United States.