How Do I Become Sole Distributor

It is important to have a properly-drafted agreement in place if your goal is to be a sole or exclusive distributor. The contract you sign with the company to become a sole distributor will be the most important aspect of your role. Your rights as sole distributor can be safeguarded if you are proactive.

  • It is possible to become sole distributor for one company if an agreement has been properly drafted.

Discuss the boundaries of your exclusive distributorship. It is important to offer as much geographic coverage as possible for your company (that you are able to manage).

Decide the first term for which sole distributorship is to remain in effect. A longer term will generally work in your favor.

Talk to the company about how your exclusive distributorship may be extended beyond the original term.

In case of a valid reason to end the relationship, create an exit plan in your agreement.

A non-compete clause should be drafted in a concise manner. The company will likely insist on the non-compete clause. It should be as brief as possible and keep it focused on the territory.