An agency of record agreement template is a document that outlines the terms and conditions of the relationship between a company and its advertising agency. This agreement establishes a long-term commitment between the two parties and provides a framework for the work they do together.
An agency of record (AOR) is a term used in the advertising industry to describe the main advertising agency that a company works with. An AOR agreement is an important legal document that lays out the expectations, roles, and responsibilities of both the company and the agency. A well-written AOR agreement template can help protect both parties and ensure a successful working relationship.
An AOR agreement template typically includes the following elements:
1. Scope of Work: This section defines the specific services that the agency will provide to the company. It may include things like strategic planning, creative development, media planning and buying, and account management.
2. Compensation: This section outlines the payment terms for the agency`s services. It may specify a set monthly retainer fee or a commission-based structure based on media spend. It may also include provisions for reimbursing the agency for out-of-pocket expenses.
3. Term and Termination: This section outlines the length of the agreement, as well as the circumstances under which either party may terminate the agreement. It may include provisions for notice periods and penalties for early termination.
4. Responsibilities: This section outlines the roles and responsibilities of both the company and the agency. It may specify things like who is responsible for providing creative briefs, who is responsible for approving creative work, and who is responsible for managing the relationship between the two parties.
5. Intellectual Property: This section outlines ownership and use rights for any intellectual property created during the course of the relationship. It may also include confidentiality and non-disclosure provisions to protect any proprietary information shared between the parties.
6. Indemnification: This section outlines how each party will indemnify the other in the event of any legal claims or disputes arising from the relationship.
An AOR agreement template is an important tool for companies and agencies working together. It helps establish a clear understanding of expectations and responsibilities, and can help avoid misunderstandings and disputes down the line. If you`re working with an agency as your AOR, make sure you have a well-written agreement in place to protect both parties and ensure a successful working relationship.