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Free Distributor Agreement Template

Our distributor agreement template has been crafted to facilitate seamless distribution partnerships. It is a comprehensive solution that saves time and allows you to establish distribution contracts with confidence. 

Introduce professionalism into your B2B interactions with our easy-to-use free distributor agreement template.

Used by 156 people

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Here’s what you will get in our distributor agreementl template:

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DISTRIBUTOR
AGREEMENT TEMPLATE










DATE: [Date]
Prepared for:

Client Name: {{Client.Name}}
Client Address:
{{Client.BillingAddress.Street}}
{{Client.BillingAddress.Street2}}
{{Client.BillingAddress.City}}, {{Client.BillingAddress.State}}
{{Client.BillingAddress.Zipcode}}
Prepared by:

Coaching Business Name: {{MyCompany.Name}}
Coaching Business Address:
{{MyCompany.BillingAddress.Street}}
{{MyCompany.BillingAddress.Street2}}
{{MyCompany.BillingAddress.City}}, {{MyCompany.BillingAddress.State}}
{{MyCompany.BillingAddress.Zipcode}}

This Distributor Agreement ("Agreement") is made and entered into as of [Date], by and between {{MyCompany.Name}} ("Company") and {{Client.Name}} ("Distributor").

1. Identification of Parties

Company:

  • Legal Entity Name: {{MyCompany.Name}}
  • Principal Place of Business: {{MyCompany.BillingAddress.Street}}
    {{MyCompany.BillingAddress.Street2}}
    {{MyCompany.BillingAddress.City}}, {{MyCompany.BillingAddress.State}}
    {{MyCompany.BillingAddress.Zipcode}}

Distributor:

  • Legal Entity Name: {{Client.Name}}
  • Principal Place of Business:
    {{Client.BillingAddress.Street}}
    {{Client.BillingAddress.Street2}}
    {{Client.BillingAddress.City}}, {{Client.BillingAddress.State}}
    {{Client.BillingAddress.Zipcode}}

2. Appointment and Acceptance

The Company hereby appoints the Distributor as a non-exclusive distributor of the Company's products, and the Distributor hereby accepts such appointment, subject to the terms and conditions set forth in this Agreement.

3. Scope of Distributor Activities

The Distributor shall have the right to market, promote, and sell the following products of the Company:

  • [Detailed description of products]

4. Distributor Responsibilities

The Distributor agrees to:

  • Actively promote and sell the Company's products.
  • Provide customer support for the products sold.
  • Comply with all applicable laws and regulations in the performance of its duties under this Agreement.
  • Maintain accurate records of all transactions and provide regular reports to the Company.
  • Provide sales forecasts and performance metrics as required by the Company.

5. Company Responsibilities

The Company agrees to:

  • Provide the Distributor with marketing materials, product information, and technical support.
  • Supply the Distributor with products at agreed-upon prices.
  • Assist the Distributor in training and support as needed.
  • Deliver products in a timely manner according to the Distributor's orders.

6. Pricing and Payment Terms

Pricing:

The Company will provide the Distributor with a price list for the products, which may be updated from time to time.

Payment Terms:

  • The Distributor shall pay the Company for products within [Number] days of the invoice date.
  • Payment can be made via [Accepted Payment Methods].
  • Late payments will be subject to a [Percentage]% late fee per month.

7. Sales Targets and Performance Metrics

The Distributor agrees to meet the following sales targets:

  • Monthly/Quarterly/Annual Sales Targets: [Specific targets]
  • Performance Metrics: [Description of metrics, e.g., number of units sold, revenue generated]

Failure to meet these targets may result in the review and potential termination of this Agreement.

8. Confidentiality and Non-Disclosure

Both parties agree to keep all information exchanged during the course of this Agreement confidential. This includes but is not limited to business strategies, financial data, and proprietary processes. Neither party shall disclose any confidential information to any third party without prior written consent from the other party.

9. Intellectual Property Rights

The Company retains all intellectual property rights in its products. The Distributor is granted a non-exclusive, non-transferable license to use the Company's trademarks, trade names, and logos for the purpose of marketing and selling the Company's
products.

10. Indemnification and Limitation of Liability

Indemnification:

The Distributor agrees to indemnify and hold harmless the Company from any claims, liabilities, or expenses arising out of the Distributor's activities under this Agreement, except for those resulting from the Company's gross negligence or willful misconduct.

Limitation of Liability:

The Company's liability under this Agreement shall be limited to the amount of fees paid by the Distributor to the Company. The Company shall not be liable for any indirect, incidental, or consequential damages.

11. Term and Termination

Term:

This Agreement will commence on [Commencement Date] and will continue for a period of [Duration], unless terminated earlier in accordance with this Agreement.

Termination:

Termination for Convenience:

Either party may terminate this Agreement with [Notice Period] written notice.

Termination for Cause:

Either party may terminate this Agreement immediately upon a material breach by the other party, provided the breaching party has been given [Cure Period] days to cure the
breach.

Termination for Force Majeure:

In the event that performance of services is prevented or delayed by circumstances beyond control, either party may terminate the Agreement without liability.

12. Governing Law, Jurisdiction, and Venue for
Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of [State]. Any disputes arising out of or in connection with this Agreement shall be resolved through mediation in [Location].

13. Dispute Resolution Mechanisms and Procedures

Any disputes arising out of or in connection with this Agreement shall be resolved through mediation in [Location]. If mediation fails, disputes will be settled in a court of competent jurisdiction in the State of [State].

14. Entire Agreement, Amendments, and Waivers

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. Any amendments to this Agreement must be made in writing and signed by both parties. No waiver of any term of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is to be enforced.

15. Signatures

[Signature Block]
[Date]
[Signature Block]
[Date]
{{Client.Name}}
{{Client.Contact1.Name}}
{{MyCompany.Name}}
{{Document.Owner.Name}}

Exhibit A: Detailed Description of Products

  1. Product 1: Description of product 1.
  2. Product 2: Description of product 2.
  3. Product 3: Description of product 3.

Exhibit B: Pricing and Payment Terms

  1. Pricing: Detailed price list for products.
  2. Payment Terms: Invoices issued [Monthly/Quarterly] and payable within [Number] days.
  3. Late Payment Fees: [Percentage]% late fee per month for overdue payments.

Exhibit C: Confidentiality and Non-Disclosure Agreement

  1. Definition of Confidential Information: Explanation of what constitutes confidential information.
  2. Non-Disclosure Obligations: Restrictions on sharing information.
  3. Return of Information: Procedures for returning confidential information upon termination.

Exhibit D: Sales Targets and Performance Metrics

  1. Monthly/Quarterly/Annual Sales Targets: Specific sales targets to be achieved by the Distributor.
  2. Performance Metrics: Description of metrics to measure performance, e.g., number of units sold, revenue generated.

Exhibit E: Termination Conditions and Procedures

  1. Notice Periods for Termination: Required timeframes for notice.
  2. Cure Periods for Breaches: Timeframes for addressing breaches.
  3. List of Force Majeure Events: Events that qualify as force majeure.
No items found.

What will you get in the template?

Here’s what you will get in our distributor agreementl template:

Appointment and Acceptance
Distributor and Company Responsibilities
Confidentiality and Non-Disclosure
Scope of Activities
Pricing and Payment Terms
Governing Law and Jurisdiction

Frequently asked questions

What is a distributorship agreement?

A distributorship agreement is a legally binding contract between a supplier and a distributor. The supplier grants the distributor the right to sell, market, and earn profits from the sale of their products or services. An exclusive distributor agreement outlines the terms and conditions, including territories, exclusivity rights, and reporting requirements. 

It serves as a roadmap, directing the product journey from the manufacturer's warehouse to the customer's doorstep. Such agreements can help businesses expand their reach, gain a larger market share, and boost production. A comprehensive distribution agreement is vital to protect both parties' interests.

How does a distributor agreement work?

A distributor agreement operates as a contract between a manufacturer and a distributor. The manufacturer authorizes the distributor to sell its products, usually at a significant discount. 

The distributor then sells these products to the end consumer, adding their desired margin. The agreement outlines terms such as price margins, trade discounts, shipment delivery schedules, and payment methods. 

Once these terms are agreed upon and signed by both parties, they become legally binding. This agreement allows the distributor to sell products directly on behalf of the manufacturer.

What to include in a distribution agreement?

Distribution agreement template typically includes: 

  • Details of Parties: Clearly identify the manufacturer or supplier and the distributor.
  • Appointment and Acceptance: Formalize the distributor's appointment and the distributor's acceptance of the appointment.
  • Scope of Distributor Activities: Define the specific products or brands the distributor is authorized to sell and the geographical area where they can operate.
  • Distributor Responsibilities: Outline the distributor's duties, such as promoting, selling, and distributing the products within the specified territories.
  • Company Responsibilities: Specify the manufacturer's or supplier's obligations, including providing products, marketing support, and technical information.
  • Pricing and Payment Terms: Establish the pricing structure, payment terms, and conditions for orders and invoicing, including purchase orders and payment receipts.
  • Sales Targets and Performance Metrics: Set specific sales targets and performance metrics to measure the distributor's success.
  • Confidentiality and Non-Disclosure: Protect confidential information and trade secrets shared between the parties.
  • Intellectual Property Rights (IPR): Clarify ownership of trademarks and other IPRs related to the products and any associated materials.
  • Indemnification and Limitation of Liability: Address indemnification obligations and limitations of liability for claims arising from the agreement.
  • Termination Terms: Describe the terms under which either party can end the agreement. Include details pertaining to notice periods and grounds for termination, along with the remedies available in case of a breach.
  • Governing Law and Jurisdiction: Determine the laws of the state and jurisdiction for resolving disputes arising from the agreement.
  • Dispute Resolution Mechanism: Establish a mechanism for resolving disputes, such as mediation or arbitration through the American Arbitration Association, to avoid costly litigation.
When should I use the distribution agreement?

An exclusive distribution agreement should be used when a business owner is looking to expand their business reach. It serves as a legal safety net when you decide to spread your products far and wide. 

This legal document is particularly beneficial when a manufacturer wants to authorize a third party to market, sell, and distribute their offerings in a defined region without taking on the operational costs and responsibilities of managing sales channels themselves.

Why use a distribution agreement template?

A distribution agreement template offers you several advantages:

  • It defines the responsibilities of each party, ensuring there is no confusion.
  • These rights specify how the distributor can use the manufacturer's brand, protecting the brand's reputation.
  • It outlines the distributor's obligations, ensuring they meet the manufacturer's expectations.
  • It provides clarity on pricing, discounts, and payment terms, avoiding financial disputes.
  • It formally appoints the distributor, giving them legal rights to sell the products.
  • These include legal clauses to protect both parties' interests. Using a template ensures these key elements are covered, making the process efficient and legally sound.
How can I use a distribution agreement template?

A distribution agreement template serves as a foundational document for businesses seeking to establish partnerships with distributors. To maximize its utility, it's essential to customize the template thoroughly, ensuring it aligns with your specific business objectives and market conditions. 

Describe the duties and obligations of both parties, including territory exclusivity, pricing structures, marketing strategies, and dispute resolution procedures. Safeguard your intellectual property by explicitly defining ownership and usage rights. 

Consider incorporating termination clauses in the distribution agreement template that outline conditions for ending the partnership, such as breach of terms or below-par performance. 

By carefully crafting and reviewing the final distribution agreement, you can mitigate risks, create a strong partnership, and enhance your business's growth potential.

How do you structure a distribution deal?

Structuring a distribution deal involves the following essential steps:

  • Identify the Parties: Define the distributor and supplier.
  • Define Key Terms: Outline the product, pricing, territory, and other terms across the entire agreement.
  • Detail Rights and Obligations: Clearly outline each party's rights and obligations regarding defects, shipping, warranties, and other key aspects.
  • Set the Terms of the Agreement: Decide on the type of distribution deal. It could be exclusive, non-exclusive, franchise, or joint venture.
  • Include Payment and Delivery Terms: Detail the price points, payment terms, delivery schedules, and sales targets.
  • Negotiate the Deal: Understand the parties and their objectives, develop a comprehensive understanding of the market, identify potential risks, and design a deal structure that benefits all parties.
  • Sign the Agreement: Once all parties agree with the terms, print the document and have it signed. After signing, share a PDF of the written agreement with the other parties. 

Clear communication channels must be established throughout the duration of the contract to avoid misunderstandings or disputes.

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Zomentum has truly transformed our proposal process, making it more efficient and professional. With its revenue automation features, we've experienced a remarkable increase in productivity, saving us valuable time. The AI Writer is a game-changer, allowing us to create personalized and high-quality content for each proposal quickly. It has significantly improved our lead conversion rate, enabling us to focus on the next opportunity.

Jason Kemley
Director – Uptime Solutions

Zomentum has helped us in tracking quotes from customers without having to send PDF attachments in our e-mails and manually sign them. The support team is very receptive and always takes our suggestions in order to make it a better tool. I hope they continue improving it with more and more integrations to reduce manual entries as much as possible.

Santiago Susbielles
Finance Controller - CIO Landing

From quotations to opportunities, Zomentum helps us streamline the complete sales process, everything within a single, easily accessible dashboard. It also helps us to track the total number of proposals, leverage automation to send reminders to customers who haven't signed, and receive weekly updates on opened proposals. And on top of this, it integrates well with Connectwise flawlessly.

Michael Morgan
Managing Director – Morgan and Morgan

Initially, we used it to overcome Microsoft's NCE hurdles with digital signage agreements. But then we discovered its versatility. Now, we rely on Zomentum to effortlessly build proposals, create business cases, and attach quotes directly to the proposal. The platform enables us to track project progress and provide real-time feedback to our customers. It's streamlined our entire process, from proposal to billing. And it also integrates seamlessly with Autotask - our PSA and allows us to pull products and services from our inventory effortlessly.

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Free Distributor Agreement Template

Our distributor agreement template has been crafted to facilitate seamless distribution partnerships. It is a comprehensive solution that saves time and allows you to establish distribution contracts with confidence. 

Introduce professionalism into your B2B interactions with our easy-to-use free distributor agreement template.

What will you get in the template?

Appointment and Acceptance
Scope of Activities
Distributor and Company Responsibilities
Pricing and Payment Terms
Confidentiality and Non-Disclosure
Governing Law and Jurisdiction
No items found.
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