A distributor agreement is an official document that is drafted to acknowledge the relationship between a supplier of goods and a distributor of goods. Such an agreement can be made for a retail store too. The agreement states that the supplier has provided some goods or services to the distributor for retail uses. Retail Distribution Agreement Templates help in the making of these agreements for retail use.
What are the ‘Don’ts’ of a Distributor Agreement?
There are dos and don’ts of every kind of agreement. This includes a distributor agreement too. And if you want to make the perfect failproof distributor agreement for your retail use, then you need to avoid making these mistakes:
Step 1: Don’t Terminate Without Cause
Two types of termination clauses can be applied to a distributor agreement: termination with cause and termination with convenience. Most seasoned distributors would go for both. In other words, they would allow both the clauses to be included. However, it is mostly advised to provide the ‘termination with a cause’ only in the agreement. This is because termination for convenience would give liberty to either party to end the agreement without a proper reason.
Step 2: Don’t Move Too Fast or Too Much
Just as with any other professional or personal relationship, you cannot afford to move too fast with it. In other words, the relationship between the supplier and the distributor takes time to develop and is based on mutual trust and respect. Hence, you cannot just meet with a distributor today and sign the agreement the next day. Another thing to keep in mind while making the agreement is that the number of relationships that a provider or distributor may participate is generally limited.
Step 3: Don’t Minimize the Opportunity for Termination
Minimizing the opportunity for termination means that the involved parties would have less chance to get out of the contract when they need to. Two types of such termination clauses can be included in the agreement. This includes annual termination and semiautomatic renewal. Generally, it is advised to include both of them in the agreement. This would allow the parties to end the contract, once a year, without having to prove any cause.
Step 4: Don’t Leave the Agreement Vague
A distribution agreement can either be exclusive or non-exclusive. And it is very important to include in the agreement the kind of agreement it is. Accordingly, you cannot afford to leave the agreement vague. Making the agreement exclusive means that the distributor in the agreement is the only one for the supplier. Making the contract non-exclusive means that the distributor in the agreement is just one of the several other franchised distributors.
Step 5: Don’t Restrict the Frequency of Price Change
Restricting the ability of the distributor to change the price frequently in a year would not allow you to have a competitive advantage. This can benefit the distributor but at the supplier’s cost. The association does not bode well by an unfair benefit of one side over the other. The supplier must have the chance to move through cost increases during times of inflation or other increasing expenses.
5+ Retail Distribution Agreement Templates in PDF
1. Retail Application Distribution Agreement Template
A distribution agreement is drafted to acknowledge the relationship between the distributor and the supplier. The agreement shows the fact that the distributor is receiving goods from the supplier. You can make this agreement for your retail store quite easily with the help of this professional agreement template. This template can be downloaded in PDF format.
2. Retail Production and Distribution Agreement Format
You have been tasked with the making of the distribution agreement for your retail store. However, you realise that you do not know the format that is to be followed to make this agreement. Stuck in this situation? Do not fret because we can get you out. All you need to do is download this agreement format template and you will be able to make such agreements with ease.
3. Retail Services and Distribution Agreement Template
A retail distribution agreement is drafted between the supplier of goods and/or services and the distributor. Such an agreement shows that some transactions have occurred between the two involved parties. Do you want to make these services and distribution agreements for your needs? Then you need to download this basic agreement template.
4. Wholesale Distribution Agreement Simple
One of the most important things that you need to remember while making a distribution agreement is to make it simple. This is to allow the involved parties to understand the agreement easily. If you are having trouble in making this agreement for your retail business, no need to worry. Just download our simple agreement template and you are good to go.
5. Retail Distribution Agreement Template
It is very important to know how to make distribution agreements especially when you are handling a retail business. However, in the case that you don’t, no need to fret; we can help you out. All you have to do is download this agreement template and you will be able to draft the perfect such agreements for your needs. The template offers a sample distribution agreement that you can use as a reference guide.
6. Retailer Distributor Agreement Template in PDF
With this Retailer Distributor Agreement Template, you can get your hands on a file containing a model distribution agreement that is very simple and easy to use. The template comes with suggestive and original headings and content that have been written by professional writers. To use this template, you need to download the template in PDF format.