Trustpilot
ISO 27001 Certified
Welcome to Simply-Docs
Corporate
Employment
Health & Safety
Property
Samples & Free
Business
Commercial Agreements

Agency, Distribution and Franchise Agreement Templates

Agents, distributors and franchises are three popular ways in which a business can expand without considerable outlay.

The Agency Agreement sees the business appoint a third party to act on its behalf, marketing and selling its products and services – usually in exchange for commission. The Distribution Agreement, by contrast, sees the ownership of goods transferred to the distributor prior to their ultimate sale. Flexibility in such agreements allows for sales targets and territories to be negotiated.

A Franchise Agreement is also provided under which the owner of a business will effectively licence their business to others thus spreading their corporate identity and products or services without the expense of setting up new establishments.

Agency, Distribution and Franchise Agreement Templates is part of Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.

Frequently Asked Questions

I want another business to sell my products for me. Should I use an agent, a distributor or a franchise? +
It depends on who owns the goods and how much control you want. An agent sells on your behalf for commission and never owns the goods; a distributor buys your goods and resells them at their own risk and margin; a franchisee runs their own business under your brand and system under licence. Each has its own template here, and the choice affects your control, your risk and the legal duties that apply.
How is a distribution agreement different from agency, legally? +
In distribution the distributor buys your goods and resells them, taking ownership and the stock and credit risk, whereas an agent never owns the goods and acts in your name for commission. Importantly, the Commercial Agents Regulations 1993 protect agents, not distributors, so distribution avoids the termination-compensation rules, but it gives you less control over resale terms. Note that dictating a distributor's resale prices can breach competition law.
What should a franchise agreement cover, and is franchising regulated in the UK? +
There is no franchise-specific statute in England and Wales, so the franchise agreement itself carries the load. It should licence your brand and system, set fees and royalties, territory, standards, training, the term and what happens on exit, and protect your intellectual property. Membership of the British Franchise Association is voluntary, not a legal requirement. General law, including competition and IP law, still applies. Use the franchise template as your framework.
Can I stop my agent or distributor from competing or poaching customers after we part? +
You can include non-compete and non-solicitation restrictions, but they bind only so far as they go no wider than reasonably necessary in scope, area and time to protect a legitimate business interest. An overbroad restraint is void. For a commercial agent, any post-termination restraint is also capped by the 1993 Regulations at two years and must relate to the agent's territory, customers and goods. Draft the restrictions tightly.
Business Buy Only £38.50 + VAT!
Unlimited Downloads for One Year
No Auto-Renewal
All Commercial Agreements

Simply-4-Business Ltd Registered in England and Wales No. 4868909, 20 Mortlake High Street, Mortlake, London SW14 8JN

Trustpilot
Top