ATV Supply Agreement Due-Diligence Checklist for Dealers

Author: everjoymoto
Last updated: October 22, 2026

Evidence scope: This article does not rank a 4-wheeler brand and is not a contract or legal opinion. It provides issues for a dealer, distributor, importer and qualified counsel to review. Applicable law, product classification, transaction structure and bargaining position can change the required clauses.

A brand logo on a dealer floor is not a supply agreement. The agreement determines territory, minimum order quantities, warranty responsibility, parts availability, lead times, documentation, and training support. If those are not written down, the relationship is informal.

This guide lists the questions to ask — and get answered in writing — before committing to a brand.

How BL-057 Differs From Other Brand Pages

BL-053 covers brand accountability and who is legally responsible. BL-042 scores a brand as a dealer partnership. BL-060 covers building a balanced product line.

BL-057 is the pre-signing question list: what to ask the brand before you sign, so that the agreement covers the things that actually cause problems after the container arrives.

1. Territory and Exclusivity

• What territory am I allowed to sell in?
• Is the agreement exclusive or non-exclusive?
• If exclusive, what volume or performance threshold must I meet to keep it?
• What happens if another dealer from outside my territory sells into my area?
• Can I sell online, and to which regions?

Define the territory, channels, customer types, online sales, cross-border sales, house accounts and remedies in the signed agreement. Oral statements can be difficult to prove and may conflict with the written contract; ask qualified counsel how the governing law treats them.

Agreement Control Sheet

Before clause review, record:

Do not let a price list, warranty, quality standard or product schedule sit outside the agreement without stating its revision, priority and update process.

2. Minimum Order Quantity (MOQ)

• What is the MOQ per order?
• What is the MOQ per model?
• Is there a trial order or sample order option?
• Can I mix models to reach the MOQ?
• What happens if I cannot meet the MOQ after the first order?

A high MOQ that you cannot sell ties up working capital. Negotiate a ramp-up if possible.

Also distinguish forecasts, purchase orders, accepted orders, deposits, production authorization, cancellation, rescheduling and nonconforming delivery. A sales forecast should not silently become a binding purchase commitment.

3. Warranty Terms

• What is the written warranty duration, and what does it cover?
• Are there different warranties for engine, battery, frame, and accessories?
• Who handles warranty claims — me or the brand?
• How are warranty parts shipped, and who pays freight?
• What is the claims approval time?
• What is excluded (wear items, commercial use, modifications)?

Get the written warranty, not the headline duration. A 24-month warranty with broad exclusions may be weaker than a 12-month warranty with clear claim handling.

4. Parts and Support

• Is there a current parts catalog for the models I will order?
• What is the lead time for common wear parts?
• Do you stock parts regionally, or ship from the factory?
• What is the recommended initial parts order?
• Do you provide technical support for difficult repairs?
• Are wiring diagrams and service manuals available?

Run a parts drill: order a few common parts during the pilot and see how long they take to arrive.

5. Lead Times and Logistics

• What is the typical lead time from order to shipment?
• Who handles ocean freight and customs?
• Are there seasonal production bottlenecks?
• How are damaged units in transit handled?
• What Incoterms apply?

State the named place and Incoterms rule/version, title and risk transfer, packing, inspection, export/import responsibility, documents, insurance, freight claims, delay notice and partial shipment rules. Incoterms do not replace payment, quality, warranty, title, compliance or dispute clauses.

6. Documentation and Compliance

• What compliance documents come with each model?
• Do these documents cover my exact destination market?
• Is the owner's manual available in my language?
• Are safety labels and warnings appropriate for my market?
• Who is the compliance holder on the certificate?

Confirm with a local customs broker rather than relying on the supplier's assurance.

Use appropriate legal and compliance advisers as well as logistics professionals. A customs broker can assist with entries and documentation but should not be treated as the only authority on product safety, advertising, warranty or land-use requirements.

7. Quality, Inspection and Engineering Changes

Attach a product and quality schedule that defines:

• Approved specifications, drawings, component list, labels, manuals and packaging
• Pre-production sample and golden-sample control
• Incoming, in-process, final and pre-shipment inspection responsibilities
• Sampling plan, acceptance criteria, test equipment and record retention
• Nonconforming product, sorting, rework, replacement, credit and cost allocation
• Corrective action, root cause, effectiveness verification and escalation
• Supplier/site/component/software changes requiring advance notice and buyer approval

Inspection does not automatically waive latent defects or supplier obligations. Counsel should align acceptance, rejection and remedy language with the transaction.

8. Product Safety, Incidents and Recalls

Define who receives complaints, evaluates reportability, issues stop-sale instructions, preserves evidence, notifies authorities/dealers/owners, supplies remedies and tracks completion. Allocate investigation, notification, repair, logistics, refund and professional costs, subject to applicable law and negotiated risk allocation.

Require serial and critical-component traceability and a current contact tree. Check official recall databases during due diligence and throughout the relationship.

9. Training, Claims and Marketing Support

• Do you provide sales training for my staff?
• Do you provide product photos, spec sheets, and marketing materials?
• Is there a cooperative marketing budget?
• Do you provide a demo unit for the first order?
• What point-of-sale materials are included?

Specify who may approve product claims, translations, images, trademarks, influencer/review activity and market-specific content. The distributor should not be forced to publish a performance, certification or “best” claim that lacks model-level evidence.

10. Pricing, Payment and Landed Economics

• What is the FOB or EXW price?
• Are there volume discounts?
• What is the suggested retail price, and is it enforceable?
• How often do prices change?
• Are there marketing development funds or rebates?

Build your landed cost (price + freight + duty + compliance + warranty reserve) before accepting the margin at face value.

Also review currency, payment milestones, bank charges, taxes, price-change notice, tooling, samples, spare parts, credits, late payment, setoff, audit support and treatment of defective or delayed goods.

11. IP, Confidentiality, Data and Insurance

Identify ownership and permitted use of trademarks, photos, manuals, translations, tooling, drawings, custom designs, software, customer data and dealer-created materials. Address confidentiality duration, cybersecurity/contact data, infringement claims and post-termination use.

Have advisers review required insurance, certificates, additional-insured status where applicable, liability allocation, indemnities and limits. Do not copy these clauses from an unrelated contract.

12. Exit, Termination and Transition

• What happens if I want to stop carrying the brand?
• Can I return unsold inventory?
• Who handles warranty on units I have already sold if the relationship ends?
• What is the notice period?

These are the questions nobody asks at signing, but everyone wishes they had later.

Also address termination for cause, insolvency, safety/compliance failure, repeated quality failure, missed performance, sanctions/restricted-party concerns, force majeure, sell-off period, inventory/parts repurchase, warranty continuity, records, customer notices, tooling, data, trademarks and open claims.

Clause Review Matrix

Red Flags

• Answers are verbal only.
• The warranty document is not provided before signing.
• Parts lead times are vague.
• The MOQ is high with no trial order option.
• Compliance documents are generic or do not name your market.
• No written territory or exclusivity definition.

EverJoy's Onboarding Process

For an EverJoy project, request the proposed agreement, product/quality schedule, current warranty, parts list, compliance-document index, responsible entities and change-control process. Availability and terms must be confirmed for the exact model, seller, market and order.

Contact EverJoy Moto to request a supplier questionnaire or current project documentation.

FAQ

What should be in writing before signing?

At minimum, document the parties, products, territory, orders, price/payment, quality, changes, compliance, recalls, warranty, parts, IP, liability and termination. Ask counsel how the signed agreement and governing law treat prior statements.

Is exclusivity always better?

Not necessarily. An exclusive territory with a high volume commitment can lock you into unsold inventory. Negotiate a performance ramp.

How do I test a brand before committing?

Run a small trial order, place a few parts orders, submit a technical question, and check response time and accuracy.

Sources

• U.S. Federal Trade Commission: Businessperson's Guide to Federal Warranty Law — Source: Federal Trade Commission (FTC)
• U.S. Small Business Administration: Finding and Evaluating Suppliers — Source: U.S. Small Business Administration (SBA)
• U.S. Consumer Product Safety Commission: Recalls — Source: U.S. Consumer Product Safety Commission (CPSC)
• U.S. EPA: Annual Certification Data for Vehicles, Engines, and Equipment — Source: U.S. Environmental Protection Agency (EPA)

Bottom Line

The best 4-wheeler brand for your business is the one whose supply agreement covers territory, MOQ, warranty, parts, lead time, documentation, and support in writing. Ask every question above, get the answers on paper, and run a trial order before committing volume.

Terms, pricing, warranty, compliance, and availability must be confirmed for the exact model, market, and date.

Have qualified counsel review the agreement, schedules and applicable law before signature.