Distribution agreements
Appoint a distributor to buy your products and resell them in a defined territory.
Appoint a distributor and set the terms of distribution.
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Key features
Exclusive or non-exclusive appointment
A blank where you write whether the appointment is exclusive, and a defined products and territory section.
Minimum purchases
A section for the least the distributor will buy each period and what the supplier may do if it falls short.
Promotion commitments
The distributor promotes the products, keeps enough stock and spends an agreed amount on promotion, using only approved material.
Use of the supplier's marks
The distributor may use the supplier's names and marks only to promote and resell, and that right ends when the agreement does.
Recalls and stock buy-back
A recall clause with a blank for who bears the cost, and a clause letting the supplier buy back unsold stock at a price or formula you write in.
About this document
A distribution agreement appoints a business to buy a supplier's products and resell them, usually in a stated region. It sets the products and territory, prices, ordering, minimum purchases, promotion and what happens to unsold stock at the end.
The distributor buys and resells on its own account, which is different from an agent who only finds customers. This form is a blank to complete by hand.
Is this document right for you?
Useful when
- You are moving into a new region and want a local business to sell for you
- A distributor will take on stock and promote it
- You want to set minimum order levels
Commonly used by
- Manufacturers
- Importers and wholesalers
- Consumer-goods brands entering new markets
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Alternatives
These are separate documents, for different jobs.
- Reseller agreementsSet the terms for a business reselling your products.View document
- Agency agreementsAppoint an agent to act or sell on your behalf.View document
- Supplier agreementsSet the terms of supply with the businesses you buy from.View document
- Licensing agreementsLet another party use something you own, on your terms.View document
When to use this
- A manufacturer appoints a distributor for a region
- A brand brings in a distributor to handle a new product line
- An importer sets terms with a local reseller network
What happens next
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More in Sales, Distribution & Commercial
- Sales agreementsSet the terms for selling goods or services.View document
- Supplier agreementsSet the terms of supply with the businesses you buy from.View document
- Agency agreementsAppoint an agent to act or sell on your behalf.View document
- Reseller agreementsSet the terms for a business reselling your products.View document
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Questions
About the distribution agreements
A distributor buys the goods and resells them in its own name. An agent finds customers for you but does not buy. For the second, see agency agreements.
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