Travel Agency Affiliation Agreement
Travel Agency Affiliation Agreement
This Travel Agency Affiliation Agreement ("Agreement") is made effective as of [Date], by and between [Your Company Name], a [Type of Entity] duly organized and existing under the laws of [State/Country of Incorporation], with its principal office located at [Your Company Address] ("Principal"), and [Affiliate Agency Name], a [Type of Entity] duly organized and existing under the laws of [State/Country of Incorporation], with its principal office located at [Affiliate Agency Address] ("Affiliate").
WHEREAS, the Principal operates an established travel agency network offering a wide range of travel-related services and has developed a comprehensive marketing and operational system;
WHEREAS, the Affiliate desires to enter into an affiliation with the Principal to leverage the established brand name, marketing resources, and operational systems of the Principal to enhance its service offerings and market reach;
WHEREAS, the Principal wishes to expand its network by affiliating with the Affiliate, granting them the rights to operate under the Principal’s brand and systems within the designated territory of [Territory];
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree to enter into this affiliation, under which the Affiliate will operate as an affiliated entity under the Principal’s brand name and receive support and resources in accordance with the terms and conditions set forth in this Agreement.
I. Grant of Affiliation
A. Rights Granted: The Principal hereby grants the Affiliate the non-exclusive right to use the Principal’s trademarks, trade names, and operational systems within the specified territory of [Territory] for the purpose of marketing and selling travel-related services. This grant is subject to the terms and conditions of this Agreement and does not confer any additional rights outside of the specified territory.
B. Territory Limitations: The Affiliate is authorized to operate exclusively within the defined territory. No rights are granted to the Affiliate to operate or market outside this territory without prior written approval from the Principal.
II. Fees and Payments
A. Initial Affiliation Fee: The Affiliate shall pay an initial fee of $10,000 to the Principal upon execution of this Agreement. This fee covers the initial setup, training, and access to the Principal’s operational systems.
B. Monthly Royalty Payments: The Affiliate agrees to pay a monthly royalty fee equivalent to 7% of the gross monthly revenue generated from the use of the Principal’s trademarks and systems. These payments are due on the 15th of the following month for each month the Agreement is in effect.
C. Marketing Fund Contribution: In addition to the monthly royalty fee, the Affiliate is required to contribute 2% of its gross monthly revenue to the Principal’s national marketing fund. This contribution is due simultaneously with the royalty payment and will be used to support national advertising and promotional activities that benefit all affiliates.
III. Obligations of the Affiliate
A. Compliance with Standards: The Affiliate agrees to maintain high standards of quality and service in line with the Principal’s guidelines and to adhere strictly to all operational procedures as outlined in the Principal’s operations manual. Compliance will be monitored through annual reviews conducted by the Principal.
B. Branding and Signage: The Affiliate must ensure that all branding, signage, and promotional materials conform to the Principal’s brand guidelines. All such materials must be approved by the Principal prior to their use, with approval or feedback provided within 10 business days of submission.
C. Reporting and Record-Keeping: The Affiliate is required to maintain accurate financial and operational records and must submit monthly sales reports to the Principal by the 10th day of the following month. These reports will include detailed sales data, customer feedback, and other performance metrics as required by the Principal.
IV. Obligations of the Principal
A. Support and Training: The Principal agrees to provide comprehensive initial training to the Affiliate's staff, covering system use, customer service, and compliance with brand standards. This training will occur over a two-week period at the Principal's headquarters within 30 days after signing the Agreement. Additionally, the Principal will offer ongoing support including quarterly training updates and an annual on-site review.
B. Operational Systems Access: The Principal will grant the Affiliate access to proprietary operational systems, including booking and reservation platforms, within 10 days of the Agreement's effective date. Technical support for these systems will be available during business hours, with emergency support available 24/7.
V. Marketing and Branding
A. National Marketing Efforts: The Principal will use the Affiliate's contribution to the national marketing fund (2% of gross monthly revenue) to execute national marketing campaigns that include digital advertising, social media promotions, and traditional media advertisements. These campaigns aim to enhance brand visibility and benefit all affiliates.
B. Approval of Local Marketing Materials: The Affiliate is required to submit all local marketing materials to the Principal for approval before use. The Principal shall review and respond to such submissions within 10 business days. The Principal will ensure that the materials meet brand guidelines and support the brand's overall marketing strategy.
VI. Intellectual Property
A. Use of Intellectual Property: The Affiliate is granted a non-exclusive, non-transferable right to use the Principal’s intellectual property, including trademarks and trade names, strictly in accordance with the terms of this Agreement. The right to use this intellectual property is confined to the Affiliate's designated territory and is solely for the operation of the affiliated travel agency.
B. Protection of Intellectual Property: The Affiliate must immediately notify the Principal of any unauthorized use or infringement of the intellectual property within their territory. The Principal retains the right to take any necessary legal action to protect its intellectual property, and the Affiliate agrees to cooperate fully in such efforts.
VII. Confidentiality
The Affiliate must protect all confidential information provided by the Principal, including operational details, marketing strategies, and pricing information, and not disclose it to any third parties without prior written consent from the Principal. This obligation continues during the term of this Agreement and for five years following its termination.
VIII. Term and Termination
A. Agreement Term: This Agreement shall commence on the date of signing and will continue in effect for a period of five years unless terminated earlier under the provisions outlined herein.
B. Termination for Cause: Either party may terminate this Agreement with immediate effect by providing written notice if the other party breaches any of the terms and fails to remedy such breach within 30 days of receiving notice of the breach.
C. Voluntary Termination: The Affiliate may terminate this Agreement without cause by providing the Principal with at least 90 days' written notice.
IX. Dispute Resolution
A. Mediation: In the event of a dispute, both parties agree to first attempt to resolve the issue through mediation, facilitated by a mutually agreed-upon mediator, within 30 days of one party notifying the other of the dispute.
B. Arbitration: If mediation does not resolve the dispute, the matter will proceed to binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall take place in the jurisdiction where the Principal's headquarters are located.
X. Miscellaneous Provisions
A. Amendments: Any amendments or modifications to this Agreement must be made in writing and signed by both parties.
B. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state in which the Principal’s headquarters are located, without regard to its conflict of laws principles.
C. Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will continue to be valid and enforceable.
Signatures
This Agreement is executed by the duly authorized representatives of the Principal and the Affiliate as of the date first above written.
Principal
[Name]
[Date]
Affiliate
[Name]
[Date]
