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Five Guidelines for Creating Better Distribution Agreements

Legal and regulatory


Here are five guidelines to follow when creating The Company's next distribution agreement: Don't let details set forth in a distribution agreement become a distraction or a source of frustration.

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When distributors and suppliers are courting one another, several priorities emerge: greater sales, better profit margins, enhanced market share, expanded geographic coverage, and more. Often, the tedious details of a distribution agreement capture the attention of neither distributor nor supplier.

So long as the relationship flourishes, most parties spend little time reading or reviewing words in the distribution agreement, usually stuffed into a dark filing cabinet. If the glamour of the relationship begins to fade, one or both parties likely hunts for the agreement and begins to review the document more closely.

1. Balance: Balance in a distribution agreement ensures that neither party holds unfair power over the other.

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