What is White Label Agreement Drafting?
A white label agreement is a legal document in which a company creates a product or service and then lets another company rebrand and sell it under their name in exchange for compensation.
Since a white label agreement must be detailed, it needs to be drafted with care. If you want to write your own agreement, read the rest of this article.
We’ll explain key terms to include in a white label agreement, how to draft it accurately, and how a qualified lawyer will assist you with the process of drafting the contract.
What Key Terms Should You Include in a White Label Agreement?
A white label agreement should include the following essential aspects:
- Scope. There should be a section in the agreement that explains what products or services will be provided and what terms are required for them to be rebranded and resold.
- Payment terms. This agreement specifies costs and what payment timelines will be followed. If there are any changes made to pricing, the agreement should specify how they will be dealt with.
- Intellectual Property (IP). You should specify how the reseller is allowed to use the brand’s IP, such as trademarks and logos. This ensures that the provider maintains ownership rights of their IP.
- Territory. This outlines specific geographic restrictions for where the products or services can be sold.
- Support and maintenance. This provides information about the type of support that will be offered, such as software updates, and response times for fixing issues.
- Service Level Agreement (SLA). Related to support and maintenance, sometimes an SLA will be included to ensure the goods meet industry and performance standards.
- Termination. If either party wishes to end the agreement, they should know what triggers termination (such as breach) and notice periods for termination.
- Governing law. You should specify the governing law that governs the white label agreement. This will help both parties in the event of conflict that results in legal disputes.
What are Tips for Drafting a White Label Agreement?
When drafting a white label agreement, you should consider some important tips so that you don’t miss anything essential.
Explain Customization
The agreement should clearly detail how the reseller is allowed to change the product’s appearance or the software’s features. Although branding flexibility appeals to resellers, there must be rules in place to prevent disputes or violations.
Include License Details
Your agreement must clarify IP ownership and what license the reseller has to use the products or services. Make sure that this section is clear and easy to understand to prevent any conflict.
Clarify Payment Terms
You should include comprehensive pricing and payment terms, such as by explaining license fees, revenue sharing, and subscriptions, depending on what’s required.
Don’t Forget About Liability and Indemnification
Both parties will have responsibilities, but you should specify how risks will be allocated between them. This should include information about third party claims, performance issues, and damages.
Safeguard Privacy
If user data is involved, the agreement must comply with all industry regulations and privacy laws, so that you’ll avoid penalties or legal disputes.
Include Details About Termination
While you might include information about how to terminate the agreement early, you want to elaborate further to cover potential issues. For example, you should specify any post-termination obligations that apply, such as returning confidential information or transferring customer data.
Consider Audits
If audits will be conducted to ensure compliance with all quality standards, their processes must be included for clarity. The agreement should include provisions related to what is allowed to be audited and who will perform it.
You should also include information about how frequently audits will be conducted and any notice requirements for them.
How Does a Lawyer Help You Draft a White Label Agreement?
If you want to draft a white label agreement, it’s best to consult a qualified lawyer for assistance. A lawyer will customize the agreement according to your business model and requirements, whether you’re the supplier or reseller.
Here are other things that a lawyer will do for you:
- Protect your IP. They’ll include specific and enforceable clauses about IP ownership, such as regarding branding and trademarks.
- Allocate responsibility. A lawyer will explain both parties’ duties, such as regarding marketing and service delivery.
- Manage legal risks. They’ll include provisions in the agreement regarding confidentiality, dispute resolution, and indemnities to reduce your legal exposure.
- Comply with all relevant laws. A lawyer ensures that the white label agreement is compliant with all relevant laws and regulations.
- Consider future business changes. They’ll evaluate your situation and consider how your business requirements might change to protect your interests.
- Reduce your dispute risk. By having a lawyer ensure that your agreement is clear and precise, both parties will find it easy to understand. This minimizes your conflict risk.
Where to Find a Lawyer for White Label Agreement Drafting
If you need to hire a lawyer to help you draft a white label agreement, the process shouldn’t be stressful or time consuming. By using online legal platforms, you can access a network of qualified lawyers who are experienced to help you.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers in your location. All the lawyers on the platform have years of experience in contract drafting.
Requesting that a lawyer helps you with the process is easy. Here are the steps to follow:
- Go to the ContractsCounsel marketplace.
- Post your project for free. Include a few details to help you find the most suitable lawyer.
- Wait for lawyer bids. Receive multiple bids from lawyers directly on the platform who have the experience to help you.
- Review the lawyers’ profiles. Take some time to go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to draft your white label agreement for a flat fee.
