This how to write a distribution agreement template has 13 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our how to write a distribution agreement template:
A Guide to Preparing Your Distribution Agreement Step by Step Instructions Guidebook to Help You Create a Winning Distribution Agreement. How to Use the Business-in-a-Box Distribution Agreement Distribution Agreement Guidebook At Business-in-a-Box, our mission is to help every entrepreneur succeed in building their dream business. Therefore, we are happy to give you this FREE guidebook on how to prepare a winning Distribution Agreement. 3 Steps to a Perfect Distribution Agreement: Download the Distribution Agreement Template that goes with this guidebook. Start drafting your own plan using Microsoft Word, Google Docs, Apple Pages, or any other word processor you prefer. Use this free educational resource to learn all about preparing your distribution agreement. Legally resell products to clients and increase the profit and success of your business with this key document. Customize your distribution agreement. Simply fill-in the blanks and save. That's it. To your success, The Business-in-a-Box Team Table of Content Table of Content 2 Understanding a Distribution Agreement 3 What is a Distribution Agreement? 3 How to Prepare a Powerful Distribution Agreement 4 Terms of a Distribution Agreement 4 The Distribution Agreement Template Explained 5 Why Choose Business-in-a-Box 11 Documents Similar to the Distribution Agreement 12 Understanding a Distribution Agreement When companies are looking to expand their territory and seeking to build a distribution network to promote their products, having a properly formatted and legally drafted distribution agreement is the first stop. Our numerous distribution agreement templates give you all the legal terminology and clauses to secure a strong productive distribution network for your business. All you need to do is personalize the agreement to suit your business and distribution needs by completing the details of the template. Here is what you can expect in the distribution agreement template as well as a breakdown of how to use it. What is a Distribution Agreement? A Distribution Agreement is a legally binding document between a supplier (the company) and a distributor of the goods, products, or services bound by the agreement. The company might be a manufacturer or distributor of the goods as well. The distributor agrees to sell the relevant goods in accordance with the terms of the agreement. The distribution agreement will set out the terms of distribution for both parties to authorize and adhere to. This agreement will form the basis of the future relationship between the two parties and must include several clauses and terms to make sure that both parties are protected legally. These terms will also ensure that both parties understand what is expected of them and guide them when there is a dispute or changes in the marketplace. There are many different types of distribution agreements. The one you choose will depend on your business situation. Some of the most popular within Business‑in‑a‑Box include the standard distribution agreement, manufacturing distribution agreement, exclusive distribution agreement, non-exclusive distribution agreement and the software distribution agreement template. How to Prepare a Powerful Distribution Agreement Terms of a Distribution Agreement As with any legal document, a distribution agreement must have certain standard terms and clauses contained within. These clauses include the full legal names of the signatory parties as well as terminology definitions. Below are the standard terms that you will find in the distribution agreement templates in Business‑in‑a‑Box. Supplier Name and Address Details - Full legal name and registered address of the supplier of the goods or products that will be distributed. Also included is the main contact person of the company for any administration queries or issues. Distributor Name and Address Details - the full and legal name of the distribution company as well as the registered address details. The main contact for the company will also be listed. Standard terminology and definitions - these will be the standard definitions of the legal language that is used in the agreement. If there are any specific terminology that you would like to include in the agreement, you would need to include them here. Keep in mind that when drafting your distribution agreement, you need to confirm the exclusivity of the agreement with the included parties. Also, you should be aware of any regional or territorial boundaries that need to be highlighted in the agreement. Provision is made for the inclusion of commission terms, advertising, and marketing stipulations as well as performance thresholds. Any agreement between companies that involves the sale of goods and products must have these points defined and agreed upon. The Distribution Agreement Template Explained The first part of the distribution agreement template is dedicated to the basic terms of the agreement. These will create the basis for the rest of the agreement terms. However, there are a few points that bear a closer look: Appointment of Distributor - whether you are the supplier or the distributor you need to make sure that in the appointment section you have the following clarified. The exclusivity of the distribution agreement is important. If you grant exclusivity, then you must visit the terms about marketing and advertising as well. Exclusivity might also have some performance stipulations that need to be negotiated. Territory or Region - the geographical region that you are granting distribution rights to must be clearly defined. This will be especially helpful if you are entering into a non-exclusive distribution agreement, and other distributors will be competing for market share. In this case, you need to define the terms under which a distributor may accept an order from outside their specific territory. If the territory is across borders, then you need to address the shipping and payment issues that are involved in this type of transaction. Also, be aware of the potential for delays in payment and shipping with cross border distribution. Contingencies must be put in place for both parties to protect either party in the event of constraints of any kind. Products or Services Covered - the products pertaining to the agreement must be specified and agreed to. These products or goods can be included in the agreement itself or could be added by annexure if needed. Under the product section, you should also address the issue of distribution of competing products. This might be addressed in the exclusivity terms; however, you can readdress the issue here for clarity. If needed, you can also cover the repair and warranty of the products under this section. Any new products or future developments must also be mentioned here. Terms of Agreement (time frame) - do you want the distribution agreement to be timed? In other words, is there a tie frame attached to the distribution rights or is it a lifetime deal? You should carefully consider this point. Many manufacturers have suffered due to an incorrectly "timed" distribution agreement. Renewal and conditions of renewal must also be included under this section. Sales Responsibility - the responsibility for the sale of the goods is a very important aspect of the distribution agreement. The agreement must define the duties that the distributor has concerning the marketing and advertising of the goods in question. These aspects can be included within the document or could be added by means of an addendum if needed. When you are preparing your Business‑in‑a‑Box distribution agreement, make sure you cover the following points: Sales - who is responsible for the sales? Will the home office (supplier) sell the goods, or will the distributor also have the right to sell the goods?
