Courier and Delivery Partnership Agreement

What a good one includes

• A detailed inventory specifying which partner owns, leases, or maintains each delivery van, truck, or GPS tracking system.
• Clear definitions of the geographical territories, postal codes, or specific commercial routes assigned to each partner to prevent territory overlap.
• A precise formula outlining how delivery fees are split and how shared overheads, such as dispatch software licenses and depot rent, are distributed.
• Provisions that assign financial responsibility for lost, stolen, or damaged goods during transit and specify the minimum cargo insurance coverage each party must maintain.
• Guidelines on whether drivers are hired as shared employees or independent owner-operators, clarifying who manages their payroll and worker's compensation.
• Standardized delivery windows, customer service protocols, and package-handling rules that both parties must uphold to protect the partnership's reputation.

Common mistakes to avoid

• Partners often split profits evenly but forget to outline who pays for unexpected fleet repairs or rising fuel costs, leading to rapid financial disputes.
• Without a clear clause, partners frequently argue over who is financially responsible when a high-value parcel disappears during a multi-leg or cross-docked delivery.
• Failing to explicitly state which entity employs the drivers can expose both partners to joint-employer lawsuits or misclassification penalties.
• Many partners fail to plan how vehicles, customer accounts, and dispatch software licenses will be divided if one partner decides to leave the courier business.

Frequently asked questions