The Docushop distribution agreement template is a detailed contract document used when a company is looking to secure a partner to distribute on their behalf. This is a legal document that is used to protect both parties best interest, list out trading terms and distribution territory (amongst many other areas). Fully editable and in word format complete with sample data. WHAT IS A DISTRIBUTION AGREEMENT TEMPLATE? A distribution agreement can be used between a person or company who wants to supply goods in a particular territory or region, and wants to aappoint a third party company or person to assist in the distribution. The Distribution Agreement allows you to set the framework between both parties so you understand what is acceptable in the business relationship. It is drafted based on country to country, however with small edits can be used for inter or intra state distribution or even global. This is a detailed document that can be used when edited as a way to protect your interests when being or appointing a distributor. WHY DO I NEED A DISTRIBUTION AGREEMENT TEMPLATE? If you sell a product (or service) you may want to expand your reach beyond your own network. For example you might be based in Australia, and have great success selling in Australia but might want to expand to China. Now the language barrier, plus your limited network means selling in China will likely be extremely costly, and fraught with error. Appointing a third party distribution agent or company, with an existing network and people who speak local language (and understand local business practices) is a common way of tackling your limitations. However, often businesses who distribute your product (or service) are often new to you, and may want certain terms like exclusivity. So putting a business agreement in place protects both parties and enables you both to do business freely in line with the terms of the agreement. WHAT IS INCLUDED IN THIS DISTRIBUTION AGREEMENT TEMPLATE? This is a very detailed distribution agreement written by Australian legal professionals and includes the following sections / clauses / terms: Business information of both parties Definitions and interpretation Appointment as distributor Exclusivity arrangements Sales Terms and Conditions (what they can and cannot do when selling) Sales Limitations (what territories or businesses they cannot operate in) Term of arrangement and extension of term Pricing agreement and taxes Shipping terms and standards Quality control practices Order Process & Invoicing Suspend Supply Clauses Title of property and risk Obligations of the distributor Compliance with local, state and federal laws and regulations Sales Targets Insurances Marketing Obligations Reputational Obligations Returns and Recall Policy Minimum and maximum stock levels Prohibited Acts Intellectual Property Assignments and contract transfer Infringement Protocols Consumer Law (Australian based) Indemnity, release & limited liabilty Confidentiality Clauses Termination Clauses Dispute settlement process Additional schedules for term, territory, purchase orders, products and price list Annexure for sales targets WHAT ARE THE BENEFITS OF HAVING A DISTRIBUTION AGREEMENT TEMPLATE? The key benefit of having an agreement in place is that everyone operates from the same understanding. Often when engaging third party sales professionals, their way of doing business might be very different to yours, so in order to give them an understanding of how you do business this document sets out the framework clearly. The success of a business will often depend on how well it can distribute its products. It’s therefore essential that a distribution agreement is prepared which regulates the relationship between the distributor and the supplier. By having a distribution agreement you: Decide whether it is exclusive or non-exclusive Agree which territories they can or cannot target Explain in detail what the products are and the right terminology used when selling Agree on a pricing structure and limitations on pricing Confirm what warranties you are giving / getting WHAT HAPPENS IF I DON'T HAVE A DISTRIBUTION AGREEMENT TEMPLATE? If your sales volumes are small, it might seem like a hefty document to put in place, however if your business scales and grows your sales volumes may increase, and this can cause issues with your distributor. If you don't have an agreement in place: If your demand increases but your distributor can't keep up, you can appoint another distributor You risk your brand and marketing messages getting twisted and it can cause reputational damage You risk not getting the right sales price or invoices being paid on time HOW TO USE THIS DISTRIBUTION AGREEMENT TEMPLATE? There is an extensive guidelines page that walks through how to use the template and get the best out of it. The document is also complete with sample data and majority can be used for most industries. Add / delete / edit as necessary to customise it for your business. The template is an editable Word document and is ready to download and edit immediately. Once purchased, wait a few moments while it creates your download, and you can then download when the ‘DOWNLOADS READY’ box appears. You will also receive an email with the downloads so you can access them later. Customise the template with your business name and logo. You can also change the theme template to update the colour profile to match your corporate colours. Read through every section and customise to your business. If something is not relevant, simply delete it. And of course, you can add any additional sections as you require. FORMAT: Word PAGES: 28
