Create a legally-sound distribution agreement that clearly defines the terms of product distribution, territorial rights, and performance obligations. Protect your business interests while building strong distributor relationships.
A distribution services agreement is a legally binding contract between a supplier (manufacturer or wholesaler) and a distributor that outlines the terms and conditions for the marketing, sale, and distribution of products. This agreement establishes the business relationship's framework, including territory rights, pricing structures, and performance expectations.
This template serves as a comprehensive framework for companies looking to establish a formal distribution relationship. It's designed to protect both parties' interests by clearly defining:
Use this agreement template when:
Follow these steps to customize the agreement:
This agreement template is commonly used in:
Follow these guidelines for an effective agreement:
Consider these variations based on your needs:
Companies have successfully used this template to:
Exclusive rights mean the distributor is the only authorized seller in a specified territory, while non-exclusive rights allow multiple distributors in the same area.
Initial terms typically range from 1-3 years, with options for renewal based on performance.
Common metrics include minimum purchase requirements, sales targets, market penetration goals, and customer service standards.
Agreements usually specify wholesale pricing, volume discounts, payment terms, and any special pricing arrangements.
Include provisions for termination with and without cause, notice periods, and post-termination obligations.