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what is the one key clause every distributor wants in a distribution agreement interesting hi everyone simon here from the contract company contracts is what we do all day every day and sometimes overnight lucky us rydo if you are a distributor so good to be supplied to you from a supplier supplier supplies goods to distributor you as a distributor get the right to distribution and to distribute those goods same thing at first what is the one key clause you want in the agreement exclusivity that's right you will want exclusivity why well if you as the distributor are going to spend time and money marketing that brand or that product in the region that you've been granted the rights for you want to ensure that you are the exclusive person i.e the only person and that means to the exclusion of the supplier so you're the only person who can distribute or sell the goods in that region that's why you as a distributor will want the exclusive rights now one other thing you might want to think about too is that not only do you want the exclusive rights to distribute in the region but you want to ensure that the supplier is stopped from supplying goods to someone else who can then supply goods to your region and what i mean by that is i'm thinking about websites so let's say your supplier makes one on mountain bikes and they're based in switzerland what you need to be worried about is maybe mountain bikes isn't a good example because they're too big but let's say they make perfume what you want to be concerned about is someone let's say your exclusive region is the distributor is australia what you're worried about is that someone in australia jumps online and buys perfume from say somewhere in japan and that japanese person sends the goods to australia so you as the exclusive distributor in australia want to try and ensure that you are the only person that has the rights to sell in this case perfume in australia so what you can do is you can make a clause in the agreement with the supplier that mandates that if you become aware of any goods being sold in the country then you can tell the supplier and they can then take action against the relevant third party that has been supplying goods into in this case australia so that's why if you are a distributor the one key clause you want is exclusivity so that you have some certainty and a business that you can develop and potentially sell to generate money so there's a long way of saying if you're a distributor you want exclusivity because you're going to tip time and money into marketing products and you also want exclusivity because if you have generated you know lots of sales from your marketing efforts then you then have a legitimate business that can be sold as long as that distribution has relevant assignment and novation rights in there that's a separate subject of a separate video though so anyway that's the one key clause you as a distributor want in every distribution agreement exclusively if you have any questions please feel free to get in touch simon contract company.com.u or 1-800-355-4555 thanks very much