Market Trader Collaboration Memorandum of Understanding

What a good one includes

• A detailed breakdown of how stall fees, electricity bills, insurance premiums, and marketing costs will be split between all parties.
• A clear description of how the physical display space, storage areas, and prominent frontage will be divided to ensure fair product visibility.
• A rotating roster or agreed schedule outlining who is responsible for setting up, staffing the stall during trading hours, and packing down.
• A defined process for how joint sales will be recorded, which point-of-sale systems will be used, and when payouts will be transferred.
• Specific terms outlining who is financially responsible if inventory is damaged, stolen, or if a customer files a public liability claim.
• An agreed-upon notice period and step-by-step process for how either trader can gracefully exit the agreement early without penalty.

Common mistakes to avoid

• Skipping the details on cash handling and failing to agree on a unified point-of-sale system, which leads to confusing end-of-day reconciliations.
• Leaving physical space allocations vague, which often results in one brand dominating the best eye-level shelves and crowding out the other.
• Ignoring public liability insurance requirements and failing to verify that both parties hold active, valid coverage.
• Forgetting to include a clear exit strategy, which can leave one trader unexpectedly stuck paying the entire rent right before a major event.

Frequently asked questions