Distribution Services Agreement Template
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.
Distribution Services Agreement
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.
What This Template Is For
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:
- Product supply and ordering procedures
- Territory rights and exclusivity terms
- Pricing and payment structures
- Performance requirements and metrics
- Quality control standards
When To Use This Template
Use this agreement template when:
- Appointing a new distributor for your products
- Formalizing an existing distribution relationship
- Expanding into new territories through distribution partners
- Updating or replacing outdated distribution agreements
- Establishing multiple distributor relationships
How To Customize It
Follow these steps to customize the agreement:
- Define the specific products covered by the agreement
- Specify the distribution territory and any exclusivity rights
- Set pricing structures and payment terms
- Outline performance requirements and sales targets
- Add product-specific quality control measures
- Include relevant compliance requirements
- Customize termination conditions and notice periods
Common Use Cases
This agreement template is commonly used in:
- Consumer goods distribution
- Industrial equipment supply chains
- Technology product distribution
- Food and beverage distribution
- Healthcare product distribution
Best Practices
Follow these guidelines for an effective agreement:
- Clearly define all key terms and obligations
- Include specific performance metrics and reporting requirements
- Address intellectual property rights protection
- Specify product warranty and liability terms
- Include clear dispute resolution procedures
Template Variations
Consider these variations based on your needs:
- Exclusive distribution agreement
- Non-exclusive distribution agreement
- International distribution agreement
- Master distribution agreement
Success Stories
Companies have successfully used this template to:
- Expand into new international markets
- Streamline multi-distributor relationships
- Establish clear performance expectations
- Protect intellectual property rights
Frequently Asked Questions
What's the difference between exclusive and non-exclusive distribution rights?
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.
How long should the agreement term be?
Initial terms typically range from 1-3 years, with options for renewal based on performance.
What performance metrics should be included?
Common metrics include minimum purchase requirements, sales targets, market penetration goals, and customer service standards.
How are pricing and payment terms typically structured?
Agreements usually specify wholesale pricing, volume discounts, payment terms, and any special pricing arrangements.
What termination rights should be included?
Include provisions for termination with and without cause, notice periods, and post-termination obligations.
Adapt this agreement template to your specific distribution relationship