Lot of things going on this time of year. Hopefully this year has been prosperous for you and you've achieved most of the goals you set for yourself for 2014. Well 2015 is almost here and it's time to review your agreement with your central station. Why is now a good time? Anytime before you're ready to sell, retire, get sick or die is a good time. You want your relationship with the central station to be clear, and you want it to be fair. Fair to you and fair to the central station.
Here's an easy way to make sure you understand the most important issues commonly found in the Dealer-CS agreement, and to be sure the agreement is fair, for you in particular. If it's fair for you then it must be fair for the cs, because I didn't suggest that it permits you to take advantage of the cs, which is not likely to happen anyway. Insist that the cs use the new Standard Form Dealer Agreement. It will have the copyright date of 12/15. It will have check boxes on the front page that address the most important issues. If you have signed any other agreement, or if you're asked to sign any other agreement, be sure to engage counsel to let you know how you're being screwed. Only the Standard Form Dealer Agreement is designed to alert you to the most significant issues you are agreeing to and gives you the opportunity to negotiate those issues before you sign the contract and before it's too late to change your deal with the cs.
Some of the issues you will see addressed are:
- who owns the lines
- can you get the lines if you want to move
- can you get electronic data if you want to move
- have you gotten special pricing
- do you have a minimum number of accounts commitment
- do all your accounts have to be in the central station
- does the cs have a lien on your accounts
- can the cs take over your accounts
- does the cs have right of first refusal if you want to sell
- do you have to stay with the cs for a minimum time
- do you owe a break up fee if you terminate early
Dealers, it's not your responsibility to purchase the Dealer Agreement; the cs has to get it and use it. So insist they do. If your cs doesn't then call me and I'll let you know which central stations have decided to be transparent and fair in their contract negotiations and execution.
Central Stations - you have until Dec 31, 2014 to purchase the Dealer Agreement at the current price.
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Speaking Engagements
If you would like to schedule a free live video/webinar presentation for your association meeting or event contact Eileen Wagda at 516 747 6700 x 312.