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Simple distribution agreement template

Simple distribution agreement template

This template lets you define essential terms for a smooth partnership, covering pricing, territory, and each party’s obligations.

Use this template
or download pdf
Simple distribution agreement template

This template lets you define essential terms for a smooth partnership, covering pricing, territory, and each party’s obligations.

Use this template
or download pdf

About the Simple distribution agreement template

When expanding your business through distributors, getting a straightforward, legally sound agreement in place is a smart first step. A simple distribution agreement template like this one gives you a ready-to-use framework for defining terms with your distributor, clarifying expectations, and setting boundaries. You can save time on drafting and stay focused on building strong partnerships, knowing that the essential legal foundations are covered.

Key elements of the simple distribution agreement template

Here are the main elements included for a well-grounded, effective agreement:

  1. Parties and contact information: Every agreement starts by clearly identifying the involved parties. Include the names, addresses, and relevant contact information for both the distributor and manufacturer.
  2. Appointment and grant of rights: This section sets out the scope of the distributor’s rights. Specify if the distributor is exclusive in a designated territory or if other distributors may also operate there.
  3. Distributor and manufacturer obligations: Outline the specific duties for each party to ensure mutual understanding. For example, distributors may be required to maintain inventory levels, while manufacturers might commit to providing promotional materials and product support.
  4. Pricing and payment terms: Detailed pricing and payment conditions are crucial for a transparent agreement. Define wholesale pricing, payment schedules, and any discounts or rebates available based on order volume.
  5. Termination clauses: Define conditions under which either party can terminate the agreement, along with any required notice period. This element safeguards against sudden interruptions and provides a clear exit strategy if the partnership doesn’t proceed as planned.

Why you should use the simple distribution agreement template

Using a simple distribution agreement template offers a clear, structured approach to formalizing your business relationships. This template ensures that key terms like territory and obligations are well-defined from the start, reducing misunderstandings and aligning both parties on mutual goals.

With a pre-built template, you save time by filling in essential details rather than drafting from scratch. It also helps you stay organized, as the template includes all critical sections, so you won’t miss any legal or operational elements. By using a straightforward framework, you create a consistent, professional impression that can strengthen distributor partnerships and set up a smooth operational process.

Download Lumiform’s simple distribution agreement template today

Use this simple distribution agreement template to streamline your partnerships and solidify terms. With sections ready for essential details like pricing, rights, and mutual obligations, it’s clear, practical, and easy to complete. This template covers what matters most, so you can start creating stronger, well-defined business relationships right away. Simply edit it, print or share it with your team, and get right to business.

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Preview of the template
Page 1
Parties
Distributor Name
geolocation!!!
Manufacturer Name
geolocation!!!
Appointment and Grant of Rights
Is the distributor appointed as the exclusive distributor of the products in the designated territory?
Designated territory for distribution
Effective date of the distribution agreement
Initial term of the distribution agreement
Automatic renewal terms
Distributor's Obligations
Maintain appropriate inventory levels to meet customer demand
Provide sales forecasts to the manufacturer
Provide timely payment for all products purchased
Maintain appropriate sales and marketing efforts to promote the products
Comply with all applicable laws and regulations in the distribution of the products
Manufacturer's Obligations
Provide the distributor with adequate supply of the products
Provide the distributor with marketing and promotional materials
Provide the distributor with technical support and training
Ensure the products meet all applicable quality and safety standards
Pricing and Payment
Wholesale price per unit of the products
Minimum order quantity
Payment terms (e.g. net 30 days)
Are there any volume-based discounts or rebates?
Termination
Grounds for termination of the agreement by the manufacturer
Grounds for termination of the agreement by the distributor
Notice period required for termination
Rights and obligations of the parties upon termination
Miscellaneous
Governing law
Dispute resolution mechanism (e.g. arbitration, mediation)
Confidentiality obligations
Assignment and subcontracting restrictions

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Related resources

Access a complete set of resources aimed at maximizing safety, quality, and operational excellence, including detailed guides, related templates, and real-world use cases.

Topic guides

Read in-depth guides covering key topics related to this article.

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Template collections

See comprehensive collections of best practice templates related to this topic.

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Frequently asked questions

What should I include in a simple distribution agreement to protect both parties?

To protect both parties, include sections that clarify key terms like pricing, exclusivity, and obligations. Define the “territory” for distribution, list each party’s responsibilities, and set clear payment terms. Termination conditions and a dispute resolution process also help manage risks and provide structure for handling issues as they arise.

What are common mistakes to avoid when drafting a distribution agreement?

Avoid leaving terms vague or open to interpretation—specifics around responsibilities, pricing, and territory are essential. Another common error is overlooking renewal terms or termination clauses, which can lead to legal issues later. Also, make sure to review local regulations if your distribution spans multiple regions.

How often should I review or update the terms of a distribution agreement?

It’s wise to review a distribution agreement every year to keep up with market changes, pricing adjustments, and any changing business needs. If there are major shifts in demand, regulatory changes, or new product lines, consider updating the agreement to reflect these changes and maintain alignment between the parties.


This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.
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