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Distribution Agreement Generator

Establish the terms for product distribution. Outline territorial rights, ordering procedures, sales targets, and termination conditions.

What is a Distribution Agreement?

A Distribution Agreement is a legal contract between a supplier/manufacturer and a distributor that outlines the terms and conditions for the distribution of products. The agreement defines the relationship between the parties, the products covered, territorial rights, pricing and payment terms, performance expectations, and other key aspects of the distribution arrangement.

Key Sections Typically Included:

  • Product Description and Specifications
  • Territory and Exclusivity Rights
  • Distribution Rights and Limitations
  • Ordering Procedures and Minimum Purchase Requirements
  • Pricing, Discounts, and Payment Terms
  • Shipping and Delivery Terms
  • Marketing and Promotional Requirements
  • Intellectual Property Usage
  • Warranties and Returns
  • Term and Termination Conditions
  • Non-Competition and Confidentiality
  • Reporting and Performance Metrics

Why Use Our Generator?

Our Distribution Agreement generator helps you create a comprehensive document that clearly establishes the parameters of your distribution relationship. By defining territorial rights, pricing structures, minimum purchase requirements, and performance expectations upfront, both the supplier and distributor can build a successful partnership with clear guidelines and responsibilities.

Frequently Asked Questions

  • Q: What's the difference between exclusive and non-exclusive distribution?
    • A: In an exclusive distribution arrangement, the distributor is the only one authorized to sell the products in a specified territory. In a non-exclusive arrangement, the supplier may appoint multiple distributors in the same territory. The agreement should clearly specify the type of exclusivity granted and any exceptions.
  • Q: Should I include minimum purchase requirements?
    • A: Minimum purchase requirements help ensure distributor commitment and protect the supplier from underperforming distributors. These can be structured as initial minimum orders, annual minimums, or quarterly targets. The agreement should specify consequences for failing to meet these requirements.
  • Q: How should pricing be structured in a distribution agreement?
    • A: The agreement should clearly outline wholesale pricing, volume discount structures, and conditions for price changes. It may include a price list as an attachment that can be updated periodically according to procedures specified in the agreement. The payment terms, currency, and invoicing procedures should also be detailed.