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Direct Selling Agreement Template for Denmark

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Key Requirements PROMPT example:

Direct Selling Agreement

I need a Direct Selling Agreement under Danish law for my cosmetics company launching in March 2025, with specific provisions for online sales channels and a strict compliance framework for GDPR and consumer protection.

What is a Direct Selling Agreement?

The Direct Selling Agreement is essential for companies operating direct selling business models in Denmark. It serves as the primary contract between the company and independent sellers who market and sell products directly to consumers. This document needs to comply with Danish legal requirements, including the Danish Contracts Act, Consumer Contracts Act, and Marketing Practices Act, while also adhering to EU regulations such as GDPR. The agreement typically covers territory rights, commission structures, operational procedures, compliance requirements, and termination provisions. It's particularly important to clearly establish the independent contractor status of the direct seller while ensuring consumer protection measures are properly addressed. The agreement should be regularly reviewed and updated to reflect changes in Danish direct selling regulations and market practices.

What sections should be included in a Direct Selling Agreement?

1. Parties: Identification of the company and the direct seller, including full legal names and addresses

2. Background: Context of the agreement and brief description of the business model

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Status: Appointment of direct seller and explicit confirmation of independent contractor status

5. Territory and Products: Definition of authorized sales territory and products/services covered by the agreement

6. Direct Seller Obligations: Core responsibilities including sales practices, reporting, compliance with laws and company policies

7. Company Obligations: Company's commitments regarding product supply, training, and support

8. Compensation: Commission structure, payment terms, and calculation methods

9. Compliance and Training: Requirements for compliance with laws, regulations, and mandatory training

10. Product Orders and Inventory: Procedures for ordering, handling, and returning products

11. Intellectual Property: Usage rights and restrictions regarding company trademarks and materials

12. Confidentiality: Protection of confidential information and trade secrets

13. Data Protection: GDPR compliance and data handling requirements

14. Term and Termination: Duration of agreement and termination provisions

15. Post-Termination: Obligations and restrictions after agreement ends

16. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Direct Selling Agreement?

1. Minimum Performance Requirements: Include when the company requires minimum sales targets or activity levels

2. Downline Organization: Include for multi-level marketing structures to define rules for building and managing sales teams

3. International Operations: Include when direct seller may operate in multiple jurisdictions

4. E-commerce Provisions: Include when online sales are permitted

5. Product Returns and Buy-Back: Include detailed procedures for product returns and inventory buy-back if significant inventory is involved

6. Marketing Materials and Approval: Include when direct seller can create their own marketing materials

7. Insurance Requirements: Include when specific insurance coverage is required

8. Non-Compete Provisions: Include when restricting involvement with competing businesses

What schedules should be included in a Direct Selling Agreement?

1. Schedule 1 - Products and Price List: Detailed list of authorized products and pricing structure

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and bonus schemes

3. Schedule 3 - Territory Description: Detailed description or map of authorized sales territory

4. Schedule 4 - Company Policies and Procedures: Key operational policies and compliance requirements

5. Schedule 5 - Marketing Guidelines: Approved marketing practices and materials

6. Schedule 6 - Data Processing Agreement: GDPR-compliant data processing terms

7. Schedule 7 - Training Requirements: Required training programs and certifications

8. Appendix A - Approved Marketing Materials: Ƶ and examples of authorized marketing materials

9. Appendix B - Product Handling Guidelines: Procedures for product storage, handling, and quality maintenance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

















































Clauses









































Relevant Industries

Consumer Goods

Cosmetics and Personal Care

Health and Wellness Products

Nutritional Supplements

Home Care Products

Kitchen and Household Items

Fashion and Accessories

Educational Products

Financial Services

Insurance Products

Digital Products and Services

Relevant Teams

Legal

Sales

Compliance

Operations

Finance

Business Development

Training and Development

Distribution

Contract Administration

Risk Management

Relevant Roles

Sales Director

Legal Counsel

Compliance Officer

Business Development Manager

Channel Manager

Direct Sales Manager

Operations Manager

Territory Manager

Training Coordinator

Commission Administrator

Contract Administrator

Sales Operations Manager

Distribution Manager

Regional Sales Manager

Compliance Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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