Create Your Merchandising Agreement

Draft a legally-sound merchandising agreement that protects your intellectual property, defines clear sales terms, and establishes revenue arrangements. Used by retailers, manufacturers, and brand owners worldwide.

Merchandising Agreement Template

A merchandising agreement is a legal contract between two parties that establishes the terms and conditions for selling, distributing, or licensing specific products or intellectual property. This comprehensive template helps both licensors and licensees create clear, enforceable agreements that protect their interests and define their business relationship.

What This Template Is For

This template is designed for businesses and individuals who need to establish legal arrangements for product merchandising, whether physical goods or intellectual property. It's particularly useful for:

  • Brand owners licensing their intellectual property
  • Retailers seeking distribution rights
  • Manufacturers producing licensed merchandise
  • Entertainment companies managing product licensing

When To Use This Template

Use this merchandising agreement template when:

  • Licensing your brand for product manufacturing
  • Establishing retail distribution arrangements
  • Setting up exclusive selling rights
  • Creating product licensing partnerships
  • Defining royalty and revenue arrangements

How To Customize It

Follow these steps to customize your merchandising agreement:

  1. Define the parties involved and their roles
  2. Specify the products or intellectual property being licensed
  3. Set the agreement's duration and territory
  4. Establish pricing and payment terms
  5. Detail quality control requirements
  6. Include specific performance obligations
  7. Add termination conditions

Common Use Cases

This template serves various industries and scenarios:

  • Fashion brands licensing their logos
  • Sports teams merchandising official products
  • Entertainment franchises licensing character merchandise
  • Retail chains establishing exclusive distribution rights

Best Practices

Follow these guidelines for an effective agreement:

  • Clearly define licensed products and territory
  • Include detailed quality control provisions
  • Specify exact royalty calculations
  • Set clear performance benchmarks
  • Include audit rights
  • Define approval processes

Template Variations

Adapt this template for specific scenarios:

  • Exclusive merchandising rights
  • Non-exclusive licensing agreements
  • International distribution contracts
  • Limited-time promotional merchandise

Success Stories

This template has helped:

  • A clothing brand secure nationwide retail distribution
  • An entertainment company license character merchandise
  • A sports team establish official merchandise partnerships

Frequently Asked Questions

What should a merchandising agreement include?

A merchandising agreement should include product specifications, territory rights, royalty terms, quality control requirements, duration, and termination conditions.

How long should the agreement term be?

Initial terms typically range from 1-3 years, with options for renewal based on performance.

What royalty rates are standard?

Royalty rates typically range from 5-15% of net sales, depending on industry and exclusivity rights.

Can I modify the agreement after signing?

Yes, with written consent from all parties through an amendment to the original agreement.

How are disputes typically resolved?

Most agreements include arbitration clauses and specify jurisdiction for dispute resolution.