This agreement establishes the sub-agent as an independent contractor — not an employee. It reflects the behavioral, financial, and relationship characteristics of a genuine IC arrangement, which is important for both IRS compliance and for defining the nature of the working relationship. The sub-agent is responsible for their own taxes, business expenses, and professional development.
This agreement documents the commission split between your agency and the sub-agent: what percentage of supplier commissions the sub-agent retains, what fees or overhead charges the agency deducts, and when commissions are paid. This is typically the most negotiated element of any sub-agent relationship, and documenting it clearly prevents the disputes about commission calculations that are among the most common in agency-contractor relationships.
The sub-agent’s authority to use your agency’s host agency credentials, booking systems, and supplier access is explicitly granted and limited in this agreement. It defines what the sub-agent is authorized to book, what systems they may access, and what restrictions apply to how they represent themselves as part of your agency. This prevents unauthorized use of your credentials and protects your agency’s supplier relationships.
One of the most critical — and most contested — elements of any sub-agent relationship is who owns the client. This agreement addresses that question directly: whether the client belongs to the agency, the sub-agent, or is jointly held; what rights the sub-agent has to take those clients if the relationship ends; and how the transition of client relationships is handled upon termination. Getting this language right is essential to protecting your agency’s long-term revenue.
This agreement includes non-solicitation provisions that prevent a departing sub-agent from directly soliciting your agency’s clients or recruiting your other staff or contractors. The restrictions apply for a defined period after the relationship ends and are limited to clients the sub-agent actually worked with — the standard for enforceability in most jurisdictions.
This agreement establishes clear termination procedures: the notice required from either party, how pending bookings are handled, how earned commissions are paid after termination, and what agency materials must be returned. A clean termination framework prevents the messy, disputed endings that are unfortunately common in undocumented sub-agent relationships.
Every travel agency owner who works with independent sub-agents operating under their credentials needs this agreement in place before the first booking. If you currently have sub-agents working with you without a signed agreement, addressing that gap should be your immediate priority.
