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- Distribution Agreements

These Distribution Agreement Templates cover a situation where the manufacturer or other supplier grants a person or entity the right to distribute its goods on either an exclusive or non-exclusive basis.

It is not intended that this Distribution Agreement should operate as a franchise agreement. In October 2007 the Federal Court held that for a party to rely on the safety net provided under the Franchise Code (Cth), certain terms must be expressly set out in the franchise agreement.

In particular, a franchise agreement needs to include a system or marketing plan for the distribution business which, if not controlled by the head distributor, must at least be suggested by that entity.

Further indications that an agreement is a Distribution Agreement and not a franchise agreement include where there is no ongoing support to the business, marketing and sales decisions to be made by the sub-distributor, and that no royalties are payable by the sub distributor.

Generally distribution rights are granted exclusively for a particular territory (Distribution Agreement: Exclusive) unless the supplier either wishes to retain some distribution rights itself or wishes to engage or has already engaged other distributors (Distribution Agreement: Non-Exclusive).

Select a Distribution Agreement Template to continue;

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