Resources
Passing the torch: A transition playbook for today’s rep firm leaders
Succession planning is one of those tasks
that is often on “tomorrow’s to-do list,” until all of a sudden that day is today. Whether retirement snuck up on you or the unexpected has accelerated your timeline, having a succession plan in place is instrumental in ensuring your rep firm continues on. A strong succession plan isn’t just about selling your business, but about protecting your legacy.
The Case of the Contract Formed by E-mail
Many otherwise sound rep contracts are subject to termination for any reason or for no reason. Even if the parties agree to an initial contract term of three or more years to give the relationship time to develop and to enable the rep to create demand for the manufacturer’s products, most reps understand that if their three-year agreement allows termination on 30 days’ notice, they don’t really have a three-year contract. Instead, they’re working on a 30-day contract.
Locking Up a Sales Rep in Perpetuity? A Presumptively Bad Idea
Many otherwise sound rep contracts are subject to termination for any reason or for no reason. Even if the parties agree to an initial contract term of three or more years to give the relationship time to develop and to enable the rep to create demand for the manufacturer’s products, most reps understand that if their three-year agreement allows termination on 30 days’ notice, they don’t really have a three-year contract. Instead, they’re working on a 30-day contract.
Litigation or Arbitration: Which is Better? You Be the Judge!
Each of these dispute resolution avenues includes certain advantages and disadvantages of which you need to be aware.
Are Noncompete Clauses No Longer Enforceable?
Since April 23, when the Federal Trade Commission (FTC) announced its final rule regarding noncompete clauses, I have received numerous calls and emails asking if such clauses are no longer binding and effective.
Buy-sell agreements are a key component for succession planning
An insured buy-sell agreement is a solution that allows your business to continue operating by providing a source of funds to compensate the deceased owner’s family for his or her share of the company, without having to liquidate company assets.
Sales rep prevails “up front” and recovers commissions and overrides
The warm climate and urban environment in the twin cities of Dallas and Fort Worth lends itself to infestations of pests, including ants, termites, mosquitoes and rodents. Recognizing the opportunity this creates, Julien’s Pest Control d/b/a Evolve Pest Control (“Evolve”) handed sales representative Brad Liston a five-year contract beginning in January 2021 to market pest control services in the greater Dallas-Fort Worth area.
Rep goes toe-to-toe with manufacturer — and wins every round
Promoting the sale of electrical insulation used in power transmission and distribution lines is undoubtedly a seductive enough field all by itself. But mix in a lawsuit over unpaid commissions and a flailing attempt to dismiss it, and soon, the same way sex and violence sells movie tickets, the enchantment with electrical insulation sales becomes palpable.
Tax-free benefits to help business owners attract and retain employees
Lack of familiarity with fringe benefits can cause business owners to overlook tax-free perks and incentives they could be offering to prospective hires or providing to their current employees (and their spouses and dependent children) at minimal cost.
Avoiding 5 percent owner status for retirement plan distribution purposes
Many individuals continue to work into their retirement years, whether due to financial need, personal desire or some other motivation. A meaningful portion of these workers are high-wage earners who pay tax at the maximum or near maximum income tax rates and do not wish to withdraw funds from their retirement accounts which in most cases are fully taxed at ordinary income tax rates.