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What to Include In A Distributorship Agreement?Exclusive Distributor.Terms And Conditions Of Sale.Pricing.Term Of The Agreement.Marketing rights.Trademark licensing.The geographical territory covered by the agreement.Performance.More items...
Institution Definition Exclusive distribution : In an exclusive distribution agreement, the supplier agrees to sell its products to only one distributor for resale in a particular territory. At the same time, the distributor is usually limited in its active selling into other (exclusively allocated) territories.
An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
In simple terms, an exclusive dealing contract prevents a distributor from selling the products of a different manufacturer, and a requirements contract prevents a manufacturer from buying inputs from a different supplier.
Advantages to Being a Sole Distributor for UsHeightened Focus. When you have one main product to concern yourself with, your focus is streamlined.Increased Availability. Sole Distributors have unlimited potential as their need increases.Higher Profits. You have a competitive edge in your area.Support from Company.
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
Exclusive distribution is a distribution strategy whereby a producer sells its products or services in only one retail outlet in a specific geographical area.
Parts of a Distribution AgreementNames and addresses of both parties.Sale terms and conditions.Contract effective dates.Marketing and intellectual property rights.Defects and returns provisions.Severance terms.Returned goods credits and costs.Exclusivity from competing products.More items...
Examples of companies which use exclusive distribution Samsung, Apple, Gucci, Lamborghini, Mercedes, BMW etc.