Having a dealer agreement drawn up: costs and process

Having a dealer agreement drafted by a specialized SME lawyer typically costs between €600 and €1,800, depending on the exclusivity, territorial agreements, and the importance of the collaboration. You are primarily paying for two things: a contract that respects competition law regarding exclusivity and pricing, and a termination clause with a reasonable notice period that prevents you from incurring damages later on. For a simple, short-term collaboration, a good template often suffices, but for exclusivity or a long-term relationship, outsourcing pays off.

The short answer

• Having it drawn up usually costs between 600 and 1,800 euros, depending on complexity and importance.
• You pay for compliance with competition law and a comprehensive termination arrangement.
• For a simple, short-term collaboration, a good model often suffices.
• For exclusivity, territorial agreements, or a major collaboration, drafting professionally pays off.
• An insufficient notice period or a prohibited price agreement can turn out to be costly.

Have a dealer agreement drawn up: what do you get?

Anyone having a dealer agreement drafted receives a contract tailored to their specific collaboration. A legal expert ensures that the division of roles remains clear, so that the dealer does not inadvertently qualify as a commercial agent with the associated protection. Additionally, the legal expert assesses the agreements regarding exclusivity and pricing against competition law and develops a termination arrangement that suits the duration and importance of the relationship.

The delivered contract typically regulates the products and territory, the purchase obligation, pricing and delivery, brand usage, liability towards end customers, and the term with notice period. You receive an editable document that you can reuse with similar dealers.

The costs in focus

The price depends on the complexity:

• Ready-made model: the cheapest, suitable for a simple collaboration without exclusivity.
• Tailor-made, standard collaboration: typically 600 to 1,100 euros for a clear contract with limited exclusivity.
• Complex or large collaboration: 1,100 to 1,800 euros or more for exclusivity, territorial agreements, and a long-term relationship.
• Additional advice: hourly rate for an ongoing dispute or a competition law assessment of a special structure.

Weigh those costs against the risk. A prohibited price agreement can lead to void provisions and a fine, and an insufficient notice period to compensation upon termination. In a collaboration of any significant scale, those risks are far outweighed by the price of a good contract.

When outsourcing pays off

Outsourcing is particularly sensible when entering into exclusivity or territorial agreements, as this touches upon competition law and you want the assurance that your provisions will hold up. It also pays off in the case of a long-term or large collaboration, because termination must be handled carefully and an error in the notice period has immediate consequences. Furthermore, if you work with multiple dealers, a good basic contract prevents you from running the same risk again with every new dealer.

A practical example: an electric bicycle manufacturer wants to appoint an exclusive dealer for each region. Because exclusivity and territorial agreements are involved, the manufacturer had the contract drafted. The legal expert assessed the agreements against the group exemption and developed a termination clause that scales with the duration of the contract. In this way, exclusivity remained permitted and the phasing out in the event of termination was predictable.

The process step by step

1. Intake: you describe the products, the area, the exclusivity, and the desired duration.
2. Analysis: the lawyer assesses the division of roles and the scope under competition law.
3. Drafting: the contract is constructed with a purchase obligation, prices, trademark usage, and termination.
4. Alignment: both parties propose changes and the document is refined.
5. Delivery: you will receive a signable and reusable contract.

The turnaround time is often between a few days and two weeks, depending on the complexity and how quickly both parties provide input.

Do it yourself or have it done?

The assessment is realistic. Doing it yourself is possible for a simple, short-term collaboration without exclusivity or price agreements, provided there is a good model and a clear notice period. Having it done by a professional pays off as soon as exclusivity, territorial agreements, or a long-term relationship come into play, or when the stakes are high. An intermediate form is a basic contract drafted once, which you then adapt yourself for each dealer, so that you pay once for legal and antitrust compliance.

Honest recommendation

For a simple, short-term collaboration involving minor interests and without any special exclusivity, you do not need to have anything drafted. A good model with a clear division of roles and a clear notice period will suffice on its own. Outsourcing is unnecessary in that case.

Do have the contract drafted as soon as you enter into exclusivity or territorial agreements, or when the collaboration is long-term and significant. In such cases, competition law applies more closely, termination must be handled carefully, and you want to be certain that your provisions hold up. Against the backdrop of void provisions, fines, and damage claims, that investment is small.

You can find more background information at what is a dealer agreement and at drafting a dealer agreement. You can have a document created via the dealer agreementpage.

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