Adopt Autograph Distribution Agreement Template For Free

Minimum quarterly sales to maintain Exclusivity - Distributor must purchase US$50,000.00 per calendar quarter to maintain exclusivity. Failure by Distributor to meet this minimum shall subject Distributor to loss of exclusivity and possible termination of this Agreement.

A distribution agreement is one under which a supplier or manufacturer of goods agrees that an independent third party will market the goods. The distributor buys the goods on their own account and trades under their own name.

Distribution agreements can last for a specified or indefinite duration and may be exclusive or non-exclusive.

Exclusive agreements The cons are that you lose control over your masters, that you may have to comply with the distributor's terms and policies, and that you may miss out on opportunities with other distributors or platforms.

Below is a basic distribution agreement checklist to help you get started: Names 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.

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.

Exclusive Distribution Strategy Example Only having a few distributors protects brand equity by keeping the right amount of supply and demand in a specific area. An example of exclusive distribution would be if a luxury brand like Apple chose only to offer its newest Apple Watch at Best Buy locations.

In an exclusive agreement, the specified distributor will be the sole distributor with the right to sell the product within a particular geographic region or within multiple regions. If the arrangement is nonexclusive, the manufacturer or vendor may supply other distributors, sometimes competing in the same market.

The purpose of exclusive distribution is to allow companies to maintain control over their product. By selling through authorized resellers, companies can ensure that their product is presented in the way they want. This can also help to control the price and the brand image.

The following is a checklist of factors to be considered when drafting a distribution contract: terms and conditions of sale; term for which the contract is in effect; marketing rights; trademark licensing; geographical territory covered by the agreement; performance; reporting; and.