It is becoming increasingly difficult for independent retailers to remain competitive, because their procurement and operating costs make it difficult for them to compete with the prices of large-scale retailers.

For some independent retailers, one solution is to join forces in order to increase their purchasing power with suppliers. This affiliation usually leads to the formation of a common banner, which allows the independent retailers to project a stronger image to their customers. The legal instrument required to govern the group of independent retailers, and any new members that join, usually takes the form of an affiliation agreement such as presented in this template.

Whereas a dealership agreement, franchise agreement or lease management agreement is used by manufacturers to establish a network of outlets, an affiliation agreement is used by retailers who band together to offer their stores as potential outlets for the manufacturers’ products.

Although this template is presented as a single contract, the contractual framework could also be made up of a principal agreement relating to membership and accessory agreements relating to specific topics, such as credit management relating to new members. In this regard, we strongly suggest that you refer to to our following templates: License to Use Trademark (H02500), Conditional Sale Agreement (L02200), General Lease Agreement (E02200), General Supply Agreement (G02300), and Movable Hypothec on the Universality of Goods in Inventory (D06200). And to better understand the credit process, we suggest reading the document "The Law Relating to Customer Credit" (L00005).

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Authorized Location
0.01.03 Banner
0.01.04 Best Effort
0.01.05 Breach
0.01.06 Change in Control
0.01.07 Confidential Information
0.01.08 Discount Allowances
0.01.09 Discount Allowances Account
0.01.10 Encumber or Encumbrance
0.01.11 Event of Default
0.01.12 Force Majeure
0.01.13 Fundamental Provisions
0.01.14 Intellectual Property
0.01.15 Legal Representatives
0.01.16 Network
0.01.17 PARTY
0.01.18 Person
0.01.19 Prime Rate
0.01.20 Products
0.01.21 Related Person
0.01.22 Rotating Credit
0.01.23 Services
0.01.24 Subsidiary
0.01.25 Supplier
0.01.26 Territory
0.01.27 Trade-Marks
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Adhesion
1.02 Licence
1.03 Supply
1.04 Credit
1.05 Conditions
1.05.01 Required by MERCHANT
1.05.02 Required by WHOLESALER
1.05.03 Choice
2.00 CONSIDERATION
2.01 Entry Fee
2.02 Licence
2.03 Supply
2.04 Credit
3.00 TERMS OF PAYMENT
3.01 Entry Fee
3.02 Licence
3.03 Supply
3.03.01 Terms
3.03.02 Cash on Delivery
3.03.03 Suspension of Delivery
3.03.04 Surcharge
3.03.05 Certified Cheque
3.04 Credit
3.05 Loss of Term
3.06 Location of Payment
3.07 Allocation
3.08 Compensation
3.09 Interest
4.00 SECURITY
4.01 In favour of MERCHANT
4.02 In favour of WHOLESALER
4.03 Suretyship
4.04 Right of Ownership
4.05 Movable Hypothec without Delivery
4.06 Assignment of Discount Allowances
4.06.01 Credit Reimbursement
4.06.02 Payment Default
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
5.10 Legal Proceedings
5.11 Operating Permits
5.12 Solvency
6.00 REPRESENTATIONS AND WARRANTIES OF THE MERCHANT
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
6.08 Technical Ability
6.09 Competition
6.10 Goods
6.10.01 No Encumbrance
6.10.02 Other Encumbrance
6.11 Fiscal Position
6.11.01 Default
6.11.02 Payment
6.11.03 Deductions
7.00 REPRESENTATIONS AND WARRANTIES OF THE WHOLESALER
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
7.08 Share Capital
7.09 Quality
7.10 Products Supply
7.11 Labour Dispute
7.12 Trade-Mark
7.12.01 Ownership
7.12.02 Confusion
7.13 Granted Rights
7.14 Intellectual Property
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE MERCHANT
9.01 Permit
9.02 Supply
9.02.01 Purchase
9.02.02 Products
9.02.03 Price
9.02.04 Pricing Policies and Sales Terms
9.02.05 Transportation Costs
9.02.06 Delivery
9.03 Banner
9.04 Sign
9.05 Installations
9.06 Insurance
9.06.01 Undertaking
9.06.02 Coverage
9.06.03 Waiver
9.06.04 Documentation
9.07 Trade-marks
9.07.01 Acknowledgement
9.07.02 Right of Ownership
9.07.03 Restriction
9.07.04 No Transfer
9.07.05 Denunciation
9.08 Advertising
9.08.01 Acknowledgement
9.08.02 By MERCHANT
9.08.03 End of the Agreement
10.00 DUTIES AND OBLIGATIONS OF THE WHOLESALER
10.01 Insurance
10.01.01 Undertaking
10.01.02 Coverage
10.02 Exclusivity
10.03 Warranty
10.04 Intellectual Property
10.04.01 Steps
10.04.02 Registration
10.04.03 Discretion
10.05 Supply
10.05.01 Products
10.05.02 Inventory
10.06 Transportation
10.06.01 Risks
10.06.02 Delivery
10.06.03 WHOLESALER’s Liability
10.07 Recovery
10.08 Advertising and Promotional Means
10.09 Grant of Credit
10.09.01 Opening of Credit
10.09.02 Delivery
10.09.03 Invoicing
10.09.04 Reimbursement
10.09.05 End of Credit
10.10 Discount Allowances
10.10.01 Discount Allowances Account
10.10.02 Default by MERCHANT
10.10.03 Payment
10.10.04 Distribution Policy
10.10.05 End of Assignment of Discount Allowances
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Without Notice
13.03.01 By WHOLESALER
13.03.02 By MERCHANT
13.04 Prior Notice
13.05 Change of Control
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewals
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT FROM A RESOLUTION OF THE WHOLESALER
SCHEDULE B – EXCERPT FROM A RESOLUTION OF THE MERCHANT
SCHEDULE 0.01.20 - PRODUCTS
SCHEDULE 4.03 – SURETYSHIP
SCHEDULE 4.05 – MOVABLE HYPOTHEC WITHOUT DELIVERY