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Web Dealer Policy
May 15, 2006 revised September 16, 2008
Over the years, we at Elite Sportswear , L.P. ("Elite" or "GK"), together with our authorized dealers throughout the country, have made a tremendous investment of our time and money in developing our name recognition, our fit, our quality and our goodwill. To best maintain this hard-earned standard of excellence, we have made a business decision as part of our overall marketing and business strategy to reserve Internet sales for Elite. In doing so, Elite believes it is best able to maintain the consistency and quality of Elite's marketing efforts.
Centralizing Internet sales also helps us best support our dealer network. A prerequisite for becoming an Elite dealer has always been that you must have a pro-shop within an athletic facility, or a free-standing retail store with an appropriate commercial business address, unless Elite expressly waives this requirement, which has only been in the most limited of circumstances. Unfortunately, we recognized that some of our dealers were reaping the benefits of a dealership without commensurate effort or investment, through sales that were not out of pro-shops or retail stores, but rather over the Internet, catalogues, and similar means.
To address the problem of dealers unfairly taking advantage of the investment of other dealers, the following methods of soliciting sales for GK products are prohibited, and may result in termination as an authorized Elite Dealer and/or other measures if appropriate. This includes sales or advertising over the Internet, in any catalogue not produced or approved by Elite, by email or via any distributed print media. These rights are expressly reserved for Elite Sportswear unless we receive an unusual request for an exception in writing and the request is granted by express written permission from an authorized representative of Elite Sportswear , L.P. If a non Internet advertisement is strictly for a local promotion, no request is necessary. The products that are excluded from this restriction are undergarments.
Without this measure, we believe that these Internet/catalog dealers would eventually drive our network of pro-shop and store dealers in the United States out of business, along with their important functions of customer support, including physical product displays, and helping customers select and fit the right product. In other words, it is not fair that customers would come into a pro-shop or specialty store, view our products on their displays, seek the advice of the store person, try the product on, and then go home to their personal computer, or mail order catalogue, and order from someone who has not provided those services. We feel as a business matter that this decision, while difficult, safeguards the standard of excellence that Elite has worked hard to achieve over the last 25 years, for its own benefit, and the benefit of dealers working towards the same objective.
Also, please note that any use of the GK logo in any form is prohibited unless approved in writing in advance by Elite.
Elite also recognizes that, while its dealer network is strong, there are still customers who do not have access to our products because they live too far away from stores and pro-shops that carry GK products. Our website was developed to address that need. Reserving internet and catalogue sales to Elite also allows Elite to assure uniform quality of representation of Elite products. Customers can order from GK's website, which offers current merchandise at Elite's suggested retail prices.
Elite Sportswear, L.P. Dealer Policy Regarding Sales and Shipments Outside of the Dealer's Territory
A. Dealer Territory:
While Dealers are permitted to sell anywhere in the United States, international sales are uniquely positioned. To best promote consistency of international representation, quality of products and their fit, and administrative efficiencies in shipping and paperwork, GK has appointed “International Distributors” to represent GK products internationally. Those International Distributors are responsible for selling GK products in specific territories. Dealers are strictly prohibited from shipping GK merchandise to any territory covered by one of our international distributors. Dealers are also prohibited from knowingly selling GK merchandise to anyone who will, in turn, sell that merchandise to someone in a distributor's territory. A complete list of GK international distributors and their associated territories may be found on the GK website at www.gkelite.com.
C. Shipping Methods:
For those international sales that are permitted, shipping GK merchandise in such a manner as to attempt to avoid the payment of international duty, GST tax, or other legal charges is strictly prohibited by law and will not be tolerated.
D. Loss of GK Dealership:
A violation of any aspect of our policy regarding sales and shipments outside of the dealer’s territory, or selling adidas merchandise made by GK outside of Elite Sportswear, L.P.'s licensed adidas territory, will result in immediate action by Elite Sportswear, L.P., which may include an immediate suspension or termination of your GK dealership.
Please do not hesitate to contact our web policy administrator with questions for clarification: webmarketing@gkelite.com