Using agents to sell products and services is a proven business model, both within the UK and for overseas markets, providing a dynamic alternative to hiring employees.
Independent agents are often highly motivated, and their business success can create rapid growth for your business. On the other hand, their working methods are much less easy to control than those of employees.
The Commercial Agents (Council Directive) Regulations 1993 may apply and, if they do, will impose important restrictions on the parties’ freedom to agree contractual terms. In particular, the regulations:-
- Set strict rules for the payment of commission, both during the agency and on termination
- Provide for compensation or an indemnity to be paid to the agent on termination of the agency
Blaser Mills has acted regularly for both agents and principals ever since the regulations came into force, and our expert solicitors can:-
- Advise on the pros and cons of using agents as opposed to distributors or an employed or self-employed sales force
- Prepare agency agreements to deliver (as far as is possible within the regulations) your objectives
- Advise on termination, negotiating and drafting exit agreements where required
- Assist you in resolving any dispute that may arise
- Reviewing the agent sales force for a high-profile fashion accessory manufacturer and recommending that the agents be replaced gradually by employees.
- Reaching the opposite conclusion for another client and producing amended agency agreements for their new commercial agents.