A distribution agreement is used where one party agrees to resell another party’s products but does so as principal. That is, they purchase and take title to the products and assume all the risk of reselling the products.
Once your startup is ready to commercialize its product, you must determine how the product will reach your target customer. You can choose to sell directly or build distribution channels.
MaRS has created a sample template of a distribution agreement to help streamline business for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and to facilitate the negotiation of terms between investors and startups, the template is yours to use at your own risk. Please see the disclaimer below.
Download the Sample Distribution Agreement Template
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