INDEPENDENT CONTRACTOR AGREEMENT
This Agreement is entered into on {date} between Mickey’s Dream Vacations, Inc, d/b/a Traveluxe, a travel agency, having its principal place of business in Chicago, IL 60655, hereinafter referred to as the Agency and {name} hereinafter referred to as the Independent Contractor.
Recitals
WHEREAS, the Agency is engaged in the business of travel sales and the Agency hereby makes available the business opportunity to the Independent Contractor (self-employed) to act as an independent contractor outside salesperson for the Agency; and
WHEREAS, the Agency is currently engaged in the aforementioned business and desires to engage the services of the Independent Contractor with a primary purpose of promoting and selling travel and the Independent Contractor agrees to act in such a capacity on behalf of the Agency form the date listed above until December 31, 2024; and
NOW, THEREFORE, the Agency hereby engages the services of the Independent Contractor, and in consideration of the mutual promises contained in this Agreement, the parties agree as follows:
1. Services: The Independent Contractor shall provide the following services for the Agency:
1.1. The Independent Contractor is hereby working with the Agency as a self-employed individual or entity to sell travel and travel services with the Agency. The Independent Contractor agrees to promote, plan, and reserve travel, collect payment/payment information, timely relate all relevant travel information to clients and act as a true customer service representative throughout the travel process.
1.2. Independent Contractor acknowledges the Agency is an Authorized Disney Vacation Planner with a focus on Disney Destinations. Independent Contractor agrees to promote Disney travel packages whenever possible to reach the desired travel goals of clients. In doing so, Independent Contractor agrees to follow all Agency and Disney policies and procedures relative to the promotion and sale of Disney travel packages.
1.3. Independent Contractor must update the TESS system with all booking information within 48 hours of booking. If a booking is not submitted correctly, Independent Contractor will forfeit all commissions that might otherwise be due. TESS must be filled out completely with all pertinent information. Independent Contractor agrees to keep TESS up to date as changes occur, as all commissions will be forfeited if this information is incorrect or missing. Any booking that is incorrect or missing information will be charged $25 for each occurrence.
2. Limitations: The Independent Contractor shall be limited in its provision of services as follows:
2.1. The Independent Contractor has no authority to change any rules, regulations, restrictions, or conditions with a supplier or vendor of the Agency.
2.2. The authority of the Independent Contractor is limited to that of reserving travel, collection, and immediately reporting funds to the supplier or vendor. The Independent Contractor shall contact the Agency prior to performance if there is any question as to whether an action falls outside the scope of these duties. Failure to do so may result in forfeiture of commissions at the sole discretion of the Agency.
2.3. The Independent Contractor may not make changes to the supplier confirmation numbers.
2.4. The Independent Contractor must always suggest travel insurance to all clients but must never attempt to explain the conditions of coverage. Independent Contractor must refer client to Travel Insurance Company.
2.5. The Independent Contractor must always maintain a courteous relationship with all suppliers’ reservation agents.
2.6. Independent Contractor must utilize their Agency email account when conducting all business as an Independent Contractor of Agency under this Agreement. Independent Contractor shall not use their personal email account or any other email account or signature block that does not identify them as an affiliate of the Agency.
2.7. Under no circumstances can the Independent Contractor use the Agency’s name or logo in any promotional materials, advertisements, business cards, or stationery unless approved in advance by the Agency. Nor shall Independent Contractor represent to any third party that Independent Contractor is a franchise or employee of the Agency. The Independent Contractor’s failure to abide by these restrictions will result in immediate termination of this Agreement. Independent Contractor’s breach of this covenant will forfeit all commissions as discussed below and will result in any other fees and costs as outlined in this Agreement and any available damages under the common law. If commissions are already paid out, then they will be returned for a breach of this provision or any other breach of this Agreement.
3. Performance: If the performance of the Independent Contractor is deemed by the Agency to not meet the Agency’s expectations, this Agreement may be terminated immediately, at the Agency’s sole discretion.
4. Commissions: As compensation for the services rendered by the above-named Independent Contractor under this Agreement, the Independent Contractor shall be entitled to commissions on sales as follows:
4.1. In General: The Travel Agency will retain its portion of any monies paid as commission by the supplier on bookings in which the Travel Agency’s CLIA and/or IATAN was used. The Independent Contractor shall be entitled to their percentage based on their current commission level of the gross commission received by the Travel Agency for sales of travel or services booked by the Independent Contractor. Most suppliers pay between 8%-22% commission on the total, pre-tax, trip cost and is paid to Travel Agency 30-60 days after return of travel by client. Independent Contractor is then paid their percentage of the gross commission based on current commission level. Such payment is contingent upon full receipt of commissions by the Agency from the travel supplier. Independent Contractor shall not be entitled to any commissions or funds not received from travel supplier. All expenses relating to these sales shall be borne by the Independent Contractor, unless otherwise agreed to in writing and signed by both the Agency and the Independent Contractor. The Independent Contractor shall be entitled to the following share of commissions based on his/her level. This includes all personal travel as well as clients that the Independent Contractor has brought to the Agency. Independent Contractor’s level(s) will be assessed on a yearly basis and are subject to either go up or down based on that assessment.
These numbers are based on traveled sales in the previous calendar year. They will be increased throughout the year as needed. If your traveled sales go down, your commission percentage will be reduced at the end of the calendar year. New Agents start at Level 1.
Level 1—$0-$85,000
50% of gross commission received
Level 2—$85,000-$150,000
60% of gross commission received
Level 3—$150,000-$200,000
65% of gross commission received
Level 4—$200,000-$300,000
70% of gross commission received
Level 5—$300,000-$450,000
75% of gross commission received
Level 6—$450,000-$700,000
80% of gross commission received
Level 7—$700,000-$999,999
85% of gross commission received
Level 8—$1,000,000 or more
90% of gross commission received
It is understood that 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. If the Agency must assume the Independent Contractor’s clients and/or bookings due to lack of performance, negligence and/or malfeasance on behalf of the Independent Contractor, then the Independent Contractor will forfeit any rights to said commission. The Agency reserves the right to modify commission levels depending on prevailing market conditions, supplier commission policies, and prevailing regulations. Independent Contractor will receive notice if and when these changes occur.
4.2 Leads from the Agency: From time to time the Agency will provide the Independent Contractor with leads that have come into the Agency through word of mouth or through quote requests via the main Agency webpage and/or social media. These referrals are the Agency’s leads and are not brought in directly from the Independent Contractor. If the Independent Contractor agrees to service these clients, the Independent Contractor will receive a 50% commission split on all lead sales where the Agency referred the client to the Independent Contractor.
4.3 Payment of Commissions Method: In order for an Independent Contractor to receive earned commission, it must submit all bookings by entering them into the Agency’s online document system. Reservations MUST be submitted and accurate within 48 hours of booking in order for the Independent Contractor to receive its earned commission. The above-named Independent Contractor shall be paid twice a month from commissions received by the Agency from its suppliers. The Agency will provide a direct deposit of the appropriate amount earned by the Independent Contractor less any expenses attributed to those sales, including postage for client documents. Independent Contractor will forfeit commissions if a booking is not entered prior to the client departure date.
4.4 Commission Deductions: Independent Contractor will pay immediately any, and all penalties levied by suppliers (air, land, cruise, tour) due to IC error and will alert Agency immediately of any errors made by the Independent Contractor. In the case the Independent Contractor does not cover any penalty or client payments when due, the Independent Contractor authorizes Agency to use any and all means necessary to collect those funds from the Independent Contractor including having to obtain a judgment.
4.4.1 If at any time the IC requires assistance with a client that is not related to being out of the office on agency business, the commission is reduced to 50%.
4.4.2 Postage. All travel documents have the option of being directly sent to clients from our suppliers. ICs that do not take advantage of this option will have the postage deducted from their commission if the Traveluxe office must send these documents. There is an additional $5.00 handling fee charged for each set of documents that must be sent.
4.5 Time Limit for Claiming Commissions After Date of Termination: All claims of the Independent Contractor for commission on sales, regardless of whether the sales are made by the Independent Contractor or others, are waived by the Independent Contractor if not made within thirty (30) days of the date of termination.