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Distribution agreements are essential for expanding your market reach through partners, but they require careful legal structuring to protect your brand, pricing, and market position. Our specialist solicitors help you create distribution relationships that drive growth while preserving control.
Exclusive Distribution:
Selective Distribution:
Open Distribution:
Territory and Market Definition:
Product and Brand Control:
Commercial and Financial Terms:
Sales and Marketing Obligations:
Training and Support:
Performance Monitoring:
Prohibited Restrictions:
Permitted Restrictions:
Block Exemption Compliance:
Cross-Border Issues:
Multi-Jurisdictional Networks:
Termination Rights:
Post-Termination Obligations:
Franchise Elements:
Regulatory Compliance:
Agreement Drafting:
Network Development:
Ongoing Support:
Professional distribution agreements enable successful market expansion while protecting your brand and ensuring regulatory compliance.
This information is for general guidance only and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified solicitor.
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Find Your SolicitorCommon questions about distribution agreements and how our solicitors can help
Consider factors including: market knowledge and local presence requirements, investment and resource availability, control vs. coverage trade-offs, profit margin implications, regulatory and compliance requirements, customer relationship preferences, and scalability of each approach.
Exclusive distribution grants sole rights to distribute in a territory, providing distributors with protected markets and stronger incentives to invest and perform. Non-exclusive distribution allows multiple distributors, offering suppliers broader market coverage but potentially creating competition between distributors.
Distribution agreement costs typically range from £1,200-£8,000. Standard distribution contracts cost £1,200-£3,000, exclusive distribution agreements £1,800-£4,000, international agreements £2,500-£5,000, and franchise agreements £3,000-£8,000. Complexity and territory scope affect pricing.
Key competition law concerns include: resale price maintenance (fixing minimum prices), absolute territorial restrictions, customer allocation between distributors, exclusive dealing obligations, and market foreclosure effects. EU and UK competition laws provide exemptions for certain distribution arrangements under specific conditions.
You can impose certain controls including: brand guidelines and marketing standards, quality requirements and training, authorized sales channels and customer types, geographical territory restrictions (with limitations), and minimum performance standards. However, you cannot generally fix resale prices or impose absolute territorial restrictions.
Termination procedures typically include: notice periods and termination procedures, stock return or buy-back arrangements, customer transition and relationship transfer, intellectual property and confidentiality obligations, non-compete restrictions (if enforceable), and potential compensation claims from distributors.
Effective performance standards include: minimum sales targets and quotas, market coverage and customer development, brand representation and marketing activities, training and certification requirements, customer service standards, inventory and stock management, and reporting and communication obligations.
No, distribution agreements involve selling products to distributors who resell them, while franchise agreements license entire business formats including trademarks, systems, and ongoing support. Franchise agreements are more heavily regulated and typically involve greater control and standardization.
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