What should a distribution agreement include?

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.

How do I write a distributor agreement?

What to Include In A Distributorship Agreement?

1. Exclusive Distributor.
2. Terms And Conditions Of Sale.
3. Pricing.
4. Term Of The Agreement.
5. Marketing rights.
6. Trademark licensing.
7. The geographical territory covered by the agreement.
8. Performance.

What is a distribution agreement?

A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.

Are exclusive distribution agreements legal?

Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.

What are the three types of distribution?

The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. Wholesalers are intermediary businesses that purchase bulk quantities of product from a manufacturer and then resell them to either retailers or—on some occasions—to the end consumers themselves.

How does a distributor get paid?

Distributor markup is when distributors raise the selling price of their products in order to cover their own costs and make a profit. Distributor markup is generally 20%, but depending on the industry, the markup could be as low as 5% or as high as 40%.

What is sole distributor agreement?

Sole distributorship is where the supplier appoints a distributor as their only (or ‘sole’) distributor within a specified territory, but unlike the “exclusive distribution” model the supplier is still able to market the applicable goods to the end users as they wish.

What are exclusive distribution agreements?

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.

How can I get a distribution deal?

Check out your record collection—many albums list the distributor in the liner notes. Independent record stores can also be a great resource—get someone on the staff to tell you which distributors they buy from and what they think of them. Once you have made your shortlist of ideal distributors, start making calls.

What is the difference between sole and exclusive distributor?

Exclusive rights prevent the supplier actively seeking sale in the distributors’ territory and from appointing other distributors in the territory. Sole rights prevent the supplier from appointing another distributor in the territory, but will not prevent the supplier seeking sales there.

What are the 4 types of distribution?

There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels. Each of these channels consist of institutions whose goal is to manage the transaction and physical exchange of products.

What are the four steps in the distribution process?

Introduction

• Direct selling;
• Selling through intermediaries;
• Dual distribution; and.
• Reverse channels.

What is a software distribution agreement template?

This agreement template is intended to serve as a binding contract between two companies- a software owner and a software distributor. The licensor has developed the software included in this software distribution agreement and the Licensee has expressed an interest to become a distributor of the software.

How long does a software distribution agreement last?

This software distribution agreement shall begin on [Agreement.CreatedDate] and will continue for a period of 12 months unless otherwise cancelled by the Parties. This agreement shall not be extended past the expiration date without written approval from both parties.

Who decides if a software will be sold through a distributor?

The developer usually decides if the distributor has an exclusive software distribution agreement, which would prevent other distributors from selling the software in the same region, or a nonexclusive agreement, which would allow other distributors to sell in the same market.

What is an exclusive software distribution agreement (ISDA)?

This template is intended to serve as an exclusive software distribution agreement, meaning that no other company will be allowed to compete with the distributor listed in this agreement for sales of the listed software.