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Private Label Agreement

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PRIVATE LABEL AGREEMENT

This Private Label Agreement (the "Agreement") is made and entered into as of Effective Date: by and between Client Name: , a business organized at Address: ("Client"), and Manufacturer Name: , a business organized at Address: ("Manufacturer"). Client and Manufacturer are referred to individually as a "Party" and collectively as the "Parties."

WHEREAS

WHEREAS, Manufacturer manufactures and supplies finished goods and has the capability to produce products to Client's specifications; and

WHEREAS, Client desires to retain Manufacturer to produce, package, and deliver certain products under Client's brand and labeling in accordance with the terms and specifications set forth herein; and

WHEREAS, Manufacturer agrees to manufacture and supply such products for Client on a private label basis subject to the terms of this Agreement.

1. SCOPE OF WORK

1.1 Services. Manufacturer shall manufacture, package, label, and deliver the products described in the product specifications attached or described below in accordance with Client's specifications and the quality standards set forth in this Agreement.

2. PRODUCT, PACKAGING AND LABELING

2.1 Manufacturing Standards. Manufacturer shall manufacture products in accordance with the specifications, good manufacturing practices, and all applicable laws. Manufacturer shall permit Client to inspect facilities and production records upon reasonable notice.

2.2 Packaging and Labeling. All packaging, labeling, inserts and trademarks applied to the products shall be as provided or approved in writing by Client. Final artwork and labels require Client's prior written approval to be provided to Manufacturer within calendar days of submission.

3. PAYMENT TERMS

3.1 Price. The price for the goods produced under this Agreement shall be Total Contract Amount: Currency:

3.2 Payment Schedule. Client shall pay Manufacturer in accordance with the following schedule: Invoices are due within days of receipt unless otherwise agreed in writing.

3.3 Late Payment. Any undisputed overdue amounts shall accrue interest at the lesser of (a) % per month, or (b) the maximum rate permitted by law. In addition, Client shall be responsible for reasonable collection costs and attorneys' fees incurred by Manufacturer in enforcing payment.

4. TERM AND TERMINATION

4.1 Term. This Agreement commences on Start Date: and continues until End Date: unless earlier terminated in accordance with this Agreement.

4.2 Termination for Cause. Either Party may terminate this Agreement upon written notice if the other Party materially breaches any obligation and fails to cure such breach within days after receipt of written notice specifying the breach.

4.3 Termination for Convenience. Either Party may terminate for convenience upon days' prior written notice to the other Party. Termination under this Section does not relieve Client of its obligation to pay for goods delivered or manufacture in process at the time of termination.

5. CONFIDENTIALITY

5.1 Definition. "Confidential Information" means non-public information disclosed by a Party relating to business, products, formulations, manufacturing processes, pricing, customers, or other proprietary matters, whether disclosed orally, in writing or by inspection.

5.2 Obligations. Each Party shall: (a) hold Confidential Information of the other Party in strict confidence; (b) not disclose such Confidential Information to any third party except as expressly permitted in this Agreement; and (c) use Confidential Information only for performance of its obligations under this Agreement.

5.3 Exceptions and Duration. Confidential Information does not include information that is publicly known through no fault of the receiving Party, independently developed, or rightfully received from a third party. Confidentiality obligations shall survive for three (3) years following termination or expiration of this Agreement, except for trade secrets which shall remain protected for so long as they qualify as trade secrets under applicable law.

6. INTELLECTUAL PROPERTY

6.1 Ownership. Client shall retain all right, title and interest in and to Client's trademarks, trade dress, logos and branded materials provided to Manufacturer ("Client Marks"). Manufacturer shall have no right to use Client Marks except as authorized by this Agreement.

6.2 License. Client grants Manufacturer a limited, non-transferable, non-exclusive license to use Client Marks solely to perform manufacturing, packaging and distribution obligations under this Agreement. All goodwill arising from such use shall inure to Client's benefit.

7. WARRANTIES, INSPECTION AND RETURNS

7.1 Manufacturer Warranty. Manufacturer warrants that products delivered to Client shall conform to agreed specifications, be free from material defects in material and workmanship, and comply with all applicable laws and regulations at the time of manufacture. This warranty shall apply for a period of months following delivery unless a different period is specified in writing.

7.2 Inspection and Rejection. Client shall inspect goods upon receipt and shall notify Manufacturer in writing of any nonconforming goods within days. Upon timely notice, Manufacturer shall, at its option, replace or repair nonconforming goods or issue a credit.

8. INDEMNIFICATION AND LIMITATION OF LIABILITY

8.1 Indemnification by Manufacturer. Manufacturer shall indemnify, defend and hold harmless Client from and against claims, liabilities, losses and expenses (including reasonable attorneys' fees) arising out of (a) Manufacturer's breach of its representations and warranties; (b) defects in manufacture; or (c) Manufacturer's negligence or willful misconduct.

8.2 Limitation of Liability. Except for liability arising from gross negligence, willful misconduct, breach of confidentiality, or a Party's indemnification obligations, neither Party shall be liable for consequential, incidental, special or punitive damages. Aggregate liability of either Party for any claim arising out of this Agreement shall not exceed the amounts paid by Client to Manufacturer under this Agreement in the twelve (12) months preceding the event giving rise to the claim.

9. COMPLIANCE WITH LAW; RECALLED PRODUCTS

9.1 Compliance. Each Party shall comply with all applicable laws, rules and regulations in the performance of this Agreement, including those governing product safety, labeling, import/export and environmental protection.

9.2 Recalls. In the event of a product recall or safety advisory, the Parties shall cooperate to remove affected product from the marketplace. Costs and responsibilities for recall shall be allocated to the Party whose act or omission caused the need for recall; if not reasonably determinable, costs shall be allocated equitably as determined by the Parties based on fault and control.

10. GOVERNING LAW AND DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of without regard to choice of law principles. The Parties shall attempt in good faith to resolve disputes by negotiation. If unresolved within sixty (60) days, disputes shall be resolved by binding arbitration conducted in the agreed jurisdiction in accordance with the arbitration rules selected by the Parties.

11. ENTIRE AGREEMENT; AMENDMENT

This Agreement, including any exhibits and schedules duly executed by the Parties, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations. This Agreement may be amended only by a written instrument signed by authorized representatives of both Parties.

12. MISCELLANEOUS

12.1 Assignment. Neither Party may assign this Agreement without the prior written consent of the other Party, except to an affiliate or successor in connection with a merger or sale of substantially all assets, provided the assignee assumes the obligations hereunder.

12.2 Notices. All notices required or permitted hereunder shall be in writing and delivered to the addresses set forth at the beginning of this Agreement or to such other address as a Party may designate by notice. Notices shall be deemed given upon receipt.

Client

Party Label:

By:

Date:

Manufacturer

Party Label:

By:

Date:

Enter text✕

What a Private Label Agreement Is and when it’s used

A Private Label Agreement is a contract between a supplier or manufacturer and a reseller or brand owner that authorizes the reseller to market products under the reseller’s brand. The agreement defines product specifications, pricing, minimum order quantities, territory, packaging and labeling requirements, intellectual property licenses, quality control and inspection rights, warranty and returns, confidentiality, and termination rights. Parties often include delivery schedules, performance metrics, and indemnities for intellectual property infringement or product defects. These agreements can be executed electronically where allowed by ESIGN and applicable state law.

Why a clear Private Label Agreement matters

A well-drafted agreement reduces disputes by allocating responsibilities for manufacturing, branding, compliance, and liability. It preserves intellectual property rights, establishes quality standards and remedies for defects, and clarifies distribution and exclusivity terms. Electronically executed agreements are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state electronic transaction laws such as UETA when parties meet legal requirements.

Why a clear Private Label Agreement matters

Who typically relies on Private Label Agreements

Several distinct parties use private label contracts depending on the product and channel involved.

  • Manufacturers and contract packagers seeking clear product and quality specifications for white-label production.
  • Retailers and brands that require IP, distribution territory, and packaging commitments before marketing branded goods.
  • Distributors and importers who handle compliance, logistics, and warranty obligations across states or regions.

Each party’s priorities differ—manufacturers focus on production terms and liability limits; brand owners focus on IP control, labeling, and exclusivity.

Core elements to include in a professional Private Label Agreement

A comprehensive agreement balances commercial terms with risk allocation and regulatory compliance; these six sections are foundational.

Parties

Full legal names, entity types and addresses of manufacturer and brand owner, plus authorized signatories and contact information for notices.

Product Specs

Detailed formulations, materials, dimensions, packaging, labeling text and artwork approvals, sample acceptance criteria, and acceptable manufacturing tolerances.

Territory & Channel

Geographic regions, permitted sales channels, exclusivity periods, and minimum purchase or sell-through commitments.

Pricing & Payment

Unit pricing, volume discounts, payment terms, invoicing procedures, taxes, duties, and late-payment remedies.

Quality & Warranty

Inspection rights, testing protocols, warranty period, recall responsibilities, and corrective action timelines for nonconforming goods.

IP & Indemnity

Brand and trademark license scope, use restrictions, ownership of improvements, indemnification for IP claims, and limitation of liability.

Step-by-step: how to complete and finalize the agreement

Follow these sequential steps to prepare, review, and execute a Private Label Agreement efficiently and consistently.

  • 01
    Draft core terms: Populate parties, product specs, pricing, and term before circulating for review.
  • 02
    Attach exhibits: Add specification sheets, artwork files, quality checklists, and testing methods as exhibits.
  • 03
    Internal approvals: Obtain sign-off from procurement, legal, quality, and branding teams before sending to counterparty.
  • 04
    Execute: Collect signatures from authorized signatories using permitted eSignature methods and retain audit trail.

How to configure an online signing workflow for this agreement

Configure fields and authentication so each signer receives only required fields and a complete audit trail is recorded.

Field Configuration
Signature Required for each authorized signer; include date stamp field
Product Exhibit Attach PDF specification and lock as read-only
Authentication Email link plus optional SMS code or KBA for added assurance
Notifications Enable reminders and final signed-copies to all primary contacts

Where to send the completed agreement and next steps

Once signed, route copies to relevant teams and store the executed agreement in a secure, auditable repository.

  • Brand Owner: Primary signed copy for marketing and distribution files.
  • Manufacturer: Signed copy to operations for production scheduling.
  • Quality Team: Exhibits and testing protocols for inspection readiness.
  • Legal & Records: Final executed PDF plus audit trail for retention and compliance.

Digital signing and technical requirements for secure execution

Use an eSignature platform that supports secure audit trails, conditional fields, and the file formats your teams use.

  • Document Formats: PDF, DOCX and output as PDF/A for archival
  • Authentication Options: Email, SMS, knowledge-based, or enterprise SSO
  • Integrations: Connect to storage and ERP systems for automated filing

Ensure chosen technology meets industry compliance needs and retains a tamper-evident audit trail that reproduces the signed record.

Typical timelines and deadlines to track in the agreement lifecycle

Track key dates explicitly to avoid missed production, approval, or termination deadlines that can trigger liability or supply interruptions.

Effective Date:

Day obligations begin; triggers lead times and payment schedules

Production Lead Time:

Manufacturer lead time for first production run, often 4–12 weeks

Artwork Approval Deadline:

Final artwork due X days before production start, per agreement

Payment Terms:

Net terms or milestone payments with clear due dates

Notice to Terminate:

Specify written notice period for nonrenewal or breach

Common mistakes to avoid when preparing a Private Label Agreement

  • Vague product specifications that rely on informal samples rather than measurable acceptance criteria, leading to disputes over conformity and rework.
  • Unclear IP ownership and licensing language that fails to specify who can register trademarks or how licensed marks may be used on packaging and marketing.
  • Missing escalation and recall procedures that leave parties without agreed steps, timelines, or cost allocation if quality or safety issues arise.
  • Failing to require proof of insurance and certificates of compliance, which increases financial exposure if product liability or regulatory enforcement occurs.

Material risks and contractual penalties to address

Termination: Early termination fees and stock return liabilities
IP Infringement: Indemnity and legal-cost obligations
Recall Costs: Allocation of recall and remediation expenses
Quality Failures: Rejection, repair, or replacement obligations
Compliance Fines: Regulatory penalties passed through to responsible party
Tax Withholding: Incorrect classification may trigger withholding liabilities

Real examples of electronic execution in practice

These practical examples show how organizations use electronic execution and templates to manage private label relationships.

Martin Properties — Tim Martin

Martin Properties avoided in-person execution by using online private label agreements for vendor products.

  • The founder noted rapid, compliant processing across devices.
  • The team processed and executed documents online with consistent security and audit trails, reducing turnaround time while keeping records accessible to operations and legal.

Optica Ventures — Brian Fitzgibbons

Optica Ventures standardized its contract workflow to ensure uniform product specs across dealers.

  • The COO praised the interface simplicity for internal and external parties.
  • Consistent templates and electronic signatures ensured customers and partners could approve specifications and artwork without delays or conflicting versions.

Practical drafting and execution tips for accuracy and speed

Adopt standard clauses, review checklists, and a consistent eSignature workflow to reduce negotiation time and downstream disputes.

Standardized exhibits and specs
Keep product specifications, artwork templates, and testing protocols in standardized exhibits referenced by exhibit number to prevent version drift and simplify approvals across production cycles.
Clear IP and branding clauses
Define trademark use, approval processes, and quality controls for branded packaging; include sample approval timelines and remedies for unauthorized use.
Defined responsibilities for recalls
Allocate recall obligations, communication plans, cost-sharing, and remediation steps; require insurance certificates and prompt notification duties.
Consistent eSignature setup
Use role-based signer order, required fields, and authentication that matches transaction risk; retain the audit trail and a signed PDF/A copy for records.

Frequently asked questions about Private Label Agreements

Answers to common questions about signing, enforceability, and practical concerns when working with private label contracts.


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