What is a White Label Agreement Review?
A white label agreement is a legal contract in which a supplier lets another party (the reseller) sell their products or services as their own. How it works is that the supplier creates a product or service that the reseller is allowed to resell with their own branding.
Specifying the duties of both parties and other important clauses in the agreement is important to do, which is why reviewing the white label agreement prior to agreeing to it is essential to avoid issues.
Read the rest of this article to explore what information is included in a white label agreement, how to review it for accuracy and clarity, and why you should consider hiring a lawyer for a professional legal review.
What Does a White Label Agreement Contain?
A white label agreement usually contains key components such as the following:
- Rights and duties. All contractual obligations must be defined. This includes how branding and distribution will work.
- Customization. This confirms that the reseller can change the generic product or service according to their branding or other requirements.
- Sales. The reseller agrees to sell the goods to their customers. They will deal with the distribution process.
- Revenue sharing. The parties might want to share a percentage of profits, so this section needs to provide specific information about how payments will be made.
- Product descriptions. This section of the agreement must include specific descriptions of what the goods/services entail, their quality standards, and features.
- Terms. The duration of the agreement and license need to be defined for clarity, as well as any notes on geographic limitations for where the goods or services can be sold.
- Confidentiality. Since the working relationship involves sharing important and sensitive information, the agreement needs to specify how it should be handled to avoid misuse.
- Exclusivity. It should be clarified if the reseller has exclusive rights in a specific territory or if the producer can allow others to make use of the goods or services.
What are Key Clauses to Check in a White Label Agreement Review?
When reviewing your white label agreement, you might wonder what you should look for. Here are some things to check so that the agreement is aligned with your interests.
Check for Branding Flexibility
While it sounds great to have options to customize the goods/services, it’s important to check what the agreement states about the provider approving the changes. This will prevent misunderstandings or disputes between parties.
Include all Intellectual Property
To protect you against ownership issues, you should check that the agreement outlines clear ownership rules regarding all IP included in the process. This includes all branding and other things, such as software code and patents.
Look for Quality Assurance
Brand value dilution is a possible pitfall of a white label agreement. The reseller will have to comply with all quality standards. The contract should include clear information about quality assurance provisions in its terms and conditions.
Understand all Territory and Exclusivity Clauses
To protect your business and avoid competition, you should confirm that the contract is clear about all location and market segment limitations.
Consider the Pricing Plan
It’s common for the manufacturer to price the goods, but you might want to check if you have any control regarding the selling of items at your own price.
Know Your Duties
As a reseller, you should check that the agreement provides clarity about your duties and responsibilities. An example is customer service. Usually, the manufacturer of the goods or services won’t deal with the reseller’s customers.
Check Product Warranties
To protect yourself as a reseller, you should check that the warranties guard against issues that could impact you. Examples of warranties include that the manufacturer promises to provide high-quality and non-defective goods and confirms that the goods are safe.
Should there be something wrong with the goods, the agreement should clarify what happens with repairs, such as if the provider is responsible for them.
Do You Need a Lawyer for a White Label Agreement Review?
It’s advisable to hire a lawyer to review your white label agreement because signing it without having it reviewed could put you at legal or financial risk. Here are some important ways in which a lawyer can help you during a contract review.
- They’ll assess the risk allocation so that it’s fair. They’ll spot any hidden liabilities that you might not be aware of, such as clauses that make you responsible for the other party’s errors.
- They’ll check that all IP terms are clear and easy to understand.
- They’ll flag ambiguous language that can create confusion or be misinterpreted.
- They’ll ensure the agreement complies with all applicable regulations and laws.
- They’ll negotiate for more balanced or reasonable terms to protect you, such as regarding price or exclusivity.
- They’ll customize the agreement to suit your business model and goals.
- They’ll unpack all complex or legal language so you understand everything. This will give you confidence that you’re entering into the agreement without any risk of surprises later.
Where Can You Find a Lawyer for a White Label Agreement Review?
If you would like to work with a lawyer for a legal review of your white label agreement, you should look for a professional lawyer on an online legal platform like ContractsCounsel.
As one of the largest online legal marketplaces, ContractsCounsel makes the process of finding a lawyer stress-free and easy. You’ll connect with experienced lawyers who have been vetted on the platform and have several years of experience in assisting clients with contract drafting and review.
To request a white label agreement review, here are the easy steps to follow.
1. Go to the ContractsCounsel marketplace. Post your project for free. Include some details of what you require.
2. Wait to receive lawyer bids. You’ll receive multiple bids from lawyers on the platform who are ready to help you.
4. Review the lawyers' profiles based on data provided by the platform, such as their location, years of experience, field of expertise, and client ratings.
5. Select the best lawyer for your purposes and hire them for the review.
