Subagent/Independent Contractor Agreement
TRAVEL AGENCY & INDEPENDENT CONTRACTOR AGREEMENT
This agreement made the day of signature, between Linda Wheeler (legal owner), doing business as Linda’s Travel Hut, LLC, a travel agency, having it’s principal place of business in Gilbert, AZ, herein referred to as “the Travel Agency, and of
(SubAgent named in email) , herein referred to as “the independent contractor”.
1- Terms of the Agreement
The Travel Agency hereby retains the Independent Contractor to act as an independent outside salesperson and the independent contractor agrees to act in such capacity on behalf of the Travel Agency for a period of 12 months from June 12, 2023. At the end of each 12 month period, this contract will automatically renew for an additional 12 month period, unless either party serves the other with 30 days written notice of their intention not to renew.
2- Duties of the Independent Contractor
The Travel Agency hereby retains the Independent Contractor as a self-employed individual or entity to sell and promote travel and travel related products to the public on behalf of the Travel Agency
3- Compensation to the Independent Contractor
The Independent Contractor shall be entitled to a portion of the net sales commissions for any sales, made by the Independent Contractor, based on the following formula.
The Independent Contractor shall be entitled to payment of commissions at 80 percent of the net commissions including overrides realized by the Travel Agency for sales of travel and travel services by the Independent Contractor named in this agreement. It is understood that any and all expenses and costs of these sales shall be borne by the Independent Contractor unless agreed to in writing and signed by both parties to this agreement. Commissions are paid weekly on Friday.
Commissions are earned upon the completion of the customer’s travel. The Travel Agency shall provide said Independent Contractor with a thorough accounting of all commissions earned.
The Independent Contractor shall be covered under the Travel Agencies E&O, Errors & Omissions Insurance and the cost of the coverage shall be born by the Travel Agency.
Expenses incurred in the booking, invoicing, and shipping of travel documents for clients sold by the independent contractor shall be paid by the IC.
It will be the Independent Contractor’s responsibility to make sure all client information is correct and entered into TESS (Host Agency CRM) in a timely manor before any commissions will be paid. Commission amounts will be based on what is entered into TESS by the IC and what is ultimately paid by the supplier.
All client issues concerning the client booking are the responsibility of the Independent Contractor.
The Independent Contractor shall not enter into any rebate/discount agreement or other agreement with any client, potential client, or supplier using the Travel Agency name, without the consent of the Travel Agency.
From time to time overflow leads may be provided to the Independent Contractor. The cost of the leads is covered in the commission split for sales from Travel Agency supplied leads. An Independent Contractor should not base their business goals solely on Travel Agency supplied leads.
4- Method of Payment
The Independent Contractor shall be paid weekly by the Travel Agency, as long as IC has commissions coming in that week. The Travel Agency shall, within 5 days of the end of each month, provide the Independent Contractor with a statement of all commissions earned on sales, made by the Independent Contractor, that the Travel Agency has received commission payment for during the previous month. Payment is made by direct deposit once the commission statement is approved by the Independent Contractor. Payment shall be in accordance with the payment schedule set forth in the “Compensation to the Independent Contractor” section of this contract.
The Independent Contractor shall be paid the gross portion of their commissions. All commissions paid to the Independent Contractor shall be reported to the IRS (form 1099) annually. All taxes and government liabilities for these earnings are the responsibility of the Independent Contractor.
5- Examination of the books
The Independent Contractor shall have the right, either personally or by an accountant retained and paid for by the Independent Contractor, at times mutually convenient to the Travel Agency and the Independent Contractor, to examine the books and accounts of the Travel Agency insofar as they relate to transactions affecting the amount of the Independent Contractors compensation.
6- Rights of the Independent Contractor
The Independent Contractor shall provide their own business supplies and be responsible for all their own expenses except for those covered by this agreement.
The Independent Contractor shall provide their own business cards, and other promotional and marketing material not supplied by the Travel Agency or the Travel Agency Consortium. The Independent Contractor shall be responsible for all business expenses not provided by the Travel Agency under this contract, in performing their duties under this agreement.
The Independent Contractor may choose where the work is to be performed, is not required to work on the premises of the Travel Agency and is not required to answer the phones or perform any other office duties at the Travel Agency.
The Independent Contractor may work whatever hours they wish. No fixed hours may be required by the Travel Agency. Although training and meetings may be provided by the Travel Agency in the best interest of the Independent Contractor, the Independent Contractor is not required to attend meetings or training sessions.
The Independent Contractor assumes the risk of incurring a loss if the sales commission does not cover the expenses incurred with the supplier or provider, or the Independent Contractor’s expenses in making the sale, similarly, the Independent Contractor enjoys the right to earn a profit yielded by commissions shared pursuant to this agreement.
The Independent Contractor is not entitled to benefits provided by the Travel Agency to its employees such as paid vacation, paid sick time, and medical or dental insurance.
The Independent Contractor retains the right to enter into contracts with other Travel Agencies for the purpose of selling travel and travel related products. The Travel Agency name is not to be used in any contract with other Travel Agencies. The Independent Contractor also retains the right to employ whatever assistants or bring in whatever partners they require, at the independent Contractor’s expense, in order to accomplish their goal of travel and travel related products sales within the terms of this agreement.
The Independent Contractor shall be responsible for the filing of Federal, State, Local, and other assessments and taxes on commissions received from the Travel Agency.
The Independent Contractor agrees to be fully responsible for complying with all International, Federal, State, and Local business laws in connection with the performance of this agreement.
The Independent Contractor agrees to indemnify and hold the Travel Agency harmless for any assessments against the Travel Agency because of failure by the Independent Contractor to properly pay any, International, Federal, State, or local taxes or assessments. The Independent Contractor also indemnifies and holds the Travel Agency harmless in any disputes over International, Federal, State, or local business laws in connection with performance of this agreement.
7- Ownership of Customers
The Independent Contractor and the Travel Agency acknowledges that all customers of the Independent Contractor, whether generated from the Independent Contractor lead or an agency lead are and shall remain the property of the Independent Contractor. If the Independent Contractor ceases to be associated with the Travel Agency, for any reason, all clients of the Independent Contractor shall be free to continue doing business with the Independent Contractor independently, or through any other Travel Agency.
8- Termination of the Agreement
This agreement may not be terminated by the Travel Agency within the 12 month period except on the following grounds.
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- The occurrence or circumstances that make it impossible or impractical for the Travel Agency to conduct its business under the terms of the agreement.
- The death of the Independent Contractor
- The willful or negligent breach of duty by the Independent Contractor in the course of their performance under this agreement.
- The continued incapacity on the part of the Independent Contractor to perform their duties.
The Independent Contractor agrees that they will indemnify and hold the Travel Agency harmless from all fines, suits, claims, demand obligations, or actions of any kind including costs & reasonable attorneys’ fees by anyone arising from or connected with the Independent Contractors’ operation of their business including transactions entered into wrongly. The Independent Contractor shall be liable for any expenses connected with any disputes.
In the event of termination of the contract by either party, the Independent Contractor shall be entitled to the compensation earned by them prior to the date of the termination as provided for in the terms of this agreement. The Independent Contractor shall not be entitled to any compensation for sales made after the contract termination date.
This agreement replaces any other agreements that have the automatic renewal clause. This agreement is a personal services agreement that shall not be transferable by the Independent Contractor without the consent of the Travel Agency.
This agreement represents the complete understanding of the parties with respect to the described outside sales relationship. No amendment, modification, termination or waiver shall be binding unless agreed upon and signed by both parties.
Upon the signature of the subagent, Linda Wheeler agrees to the terms of the subagent/independent contractor agreement.
updated August 31, 2024