As with all types of legal agreements, contracts can vary from broker to broker. Some contracts include most of the following items while others don’t.
Armed with this knowledge, you can request certain items be added into a contract before you sign with a broker:
- The length of time they will be representing you and your business – 12 months is typical.
- Specific details of their advertising and marketing plan, including the budget dedicated to advertising your business.
- Phone call schedule detailing how often the broker will provide you with updates (once a week at the bare minimum).
Also make sure the contract includes specifics about possible scenarios like:
- Does the Confidentiality Agreement prevent buyers from finding potential sellers on their own?
- How does the broker handle multiple buyer offers?
- What is the amount of the broker’s commission if the agreement expires before a sale?
- What is the amount of the broker’s commission if the seller cancels the agreement?
Remember – always get everything in writing!