The supplier is defined as an individual or organization that supplies or sells the product to the distributor on behalf of the distributor. Suppliers are typically the companies that manufacture or produce the product in question. The distributor, on the other hand, is an individual or organization that purchases a product with the intent of “distributing” it by reselling it to end consumers or to other distribution channels. The ownership of the products is transferred to the distributor under the terms of a Distribution Agreement.

In business, a Distribution Agreement is an agreement between two parties in which one party (the “distributor”) agrees to sell and distribute the goods and services of the other party (the “supplier”). When the parties sign a Distribution Agreement, they are outlining their expectations for the sale and distribution of their products, as well as the general behavior and boundaries of their relationship with one another. To get a feel of what the document is and how it works, check out these sub-distributor agreement samples that we have listed for you down below. After getting yourself acquainted with the document, feel free to use these samples as guides or even as templates for when you write the document on your own.

10+ Sub Distributor Agreement Samples

1. Sub Distributor Agreement Template

sub distributor agreement template

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2. Sub Distributor Agreement

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Size: 144 KB

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3. Company Sub Distributor Agreement

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Size: 181 KB

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4. Sample Sub Distributor Agreement

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5. Sub Distributorship Agreement

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Size: 200 KB

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6. Standard Sub Distributor Agreement

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Size: 100 KB

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7. Business Sub Distributor Agreement

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Size: 107 KB

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8. Basic Sub Distributor Agreement

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Size: 191 KB

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9. Professional Sub Distributor Agreement

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Size: 223 KB

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10. Sub Distributor Agent Agreement

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Size: 57 KB

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11. Registered Sub Distributor Agreement

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Size: 87 KB

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What Is a Sub-Distributor Agreement?

Fundamental elements of a distribution agreement include the term (the length of time the contract is in effect), terms and conditions of supply, and the sales territories covered by the agreement (regions within and/or outside of the United States). In addition, the manufacturer or vendor must determine whether the distribution agreement will be exclusive or nonexclusive in nature. In an exclusive distribution agreement, the specified distributor will be the only distributor with the right to sell the product in a specific geographic region or in multiple geographic regions, depending on the terms of the agreement. If the agreement is not exclusive, the manufacturer or vendor may supply other distributors, some of whom may be competitors in the same market as the original distributor. A distribution strategy must be decided upon by the manufacturer or vendor prior to deciding on the type of agreements to be entered into. A selective distribution strategy calls for a small number of distribution outlets to cover the target markets of the channel partner. An intensive marketing strategy aims to get the product in front of as many potential buyers as possible by utilizing a wide range of distribution channels and methods. It is generally accepted that the latter applies more to consumer-oriented products than it does to products intended for the commercial market. The scope of a distribution agreement may extend across international borders. The largest electronics and information technology distributors, such as Arrow Electronics, Avnet, Ingram Micro, and Tech Data, have subsidiaries in a number of countries in order to provide a broad geographic distribution network.

How To Use a Sub-Distributor Agreement

  1. This document can be completed by either the supplier or the distributor, depending on the circumstances. In either case, the user is responsible for entering all of the information required to complete the document. After the document has been completed, the user should print at least three (3) copies of it.
  2. If there are any attachments to the document, the attachments should be clearly labeled and attached to each and every copy of the document that has been printed or copied. When you mark the attachments, it means that you are identifying them by writing the words “Annex “A,” “Annex “B,” and so on, on the attachments themselves to identify them.
  3. The user should refer to the document as a guide to ensure that the attachments are properly marked. The attachments have been highlighted in bold to make them easier to find. Once the document has been printed and any attachments, if any, have been attached, the parties should review the document and, if everything is found to be correct, sign all original copies of the document in the presence of the other parties.
  4. There is also an Acknowledgement at the end of this document. In front of a notary public, a person declares that the signature on a document was voluntarily affixed by him and that the document was completed as a result of his own free and voluntary act, which is known as an acknowledgment. The act of acknowledging a document in front of a notary public transforms the document into a public record. Public documents are typically self-authenticating, which means that no additional evidence will be required to demonstrate that the document was executed. It is necessary for the parties to appear before a notary public with all copies of the document in hand and swear an oath to the foregoing if the document is to be acknowledged.
  5. Upon acknowledgment of the document, the notary public retains one original copy of the document for his or her records. It is recommended that both the supplier and the distributor retain a copy of the document for their own records.

 

FAQs

Is distribution agreement a contract of sale?

Distribution agreements are similar to sales contracts in that they involve the sale of goods. It is a contract between the manufacturer and the distributor for the future sale of goods by the manufacturer to the distributor.

What are distribution rights?

An agreement that grants a person or company the right to sell another company’s products or services in a specific area or country: domestic and international distribution rights are examples of such agreements.

How do I become a sole distributor?

  1. Identify your industry. The first step to becoming a distributor is identifying the industry you’d like to serve.
  2. Register your business legally.
  3. Seek suppliers and manufacturers.
  4. Plan your logistics.
  5. Apply as a distributor.
  6. Build relationships.

The language contained within a distribution agreement is only as good as the information contained within it. In the event that your agreement is unenforceable or illegal in some way, these legal blunders may have unintended consequences. Instead of leaving your business deal up to chance, consult with contract lawyers to ensure that your and your company’s rights are protected throughout the process of negotiating the agreement.

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