Exclusive distribution agreement template

Include all essential elements: clear identification of parties, specific territory definition, detailed product descriptions, and precise term length. Ensure mutual consideration exists, include governing law provisions, and have both parties sign the document. Consider having a legal professional review the agreement before finalization.

Balance flexibility with security by including both convenience and cause-based termination options. Specify notice periods (typically 30-90 days), define what constitutes cause (payment defaults, breaches), and include provisions for inventory disposition and transition assistance after termination.

Consider your industry’s sales cycles, product lifecycle, and relationship-building timeframe. Most agreements range from 1-3 years initially, with renewal options. A shorter initial term with renewal provisions gives you flexibility to adjust terms based on performance while providing stability for planning.

Focus on marketing commitments, sales targets, inventory maintenance, staff training, customer service standards, and reporting requirements. Specify how the distributor will represent your brand and products in the territory and what resources they must dedicate to promoting your offerings.