Consumer Law, Warranties Sales Ex

[savingsnest]

My jurisdiction is: TN

I am interested in working with a medical company as a VAR (independant rep) and received their contract for review. This product has additional income possibilities through residual income from monthly client support fees. This important feature is why I am considering this product.
The contract states that they can cancel the agreement at any time with or without cause and take over my client base and the monthly residuals.
They reason that they may want to sell the company later and the new owner may want a direct sales force.
Over time, the residuals could build up to $5,000 to $10,000 per month.
How can this clause be changed to protect me from building a client base and then losing it suddenly should their scenario take place?

 

[dee_dub]

The easiest way is to delete the clause.

Alternatively, maybe they agree to compensate you in the event they take over your client base. You might propose they pay you, say, an amount based on some multiple of your average monthly residuals from the previous 3 months.

I strongly suggest you do not sign any agreement without first obtaining legal advice.