The distributors can connect with Blue Ribbon and experience ease of business. Their appointment is highly appreciated as they act as the catalyst for a business. Following are some terms and conditions every distributor needs to abide by if he joins Blue Ribbon:
Distributor Contract Term:
The Agreement would be valid for a period of 10 years. Any change in the Agreement by a manufacturer might be considered, though it’s not mandatory. These modifications might be a result of either of the mentioned (i) deemed necessary by Manufacturer (ii) desirable by Distributor’s bankers (iii) facilitate either party's compliance with any law or regulation.
Once the Agreement has been signed, the manufacturer isn’t permitted to relocate his place of work. Also, it’s expected that he would not charge any fee when the Agreement gets renewed. The Agreement needs to be followed on every detail and the distributor cannot be forced to change his plan of action according to the manufacturer. In general, the latest version of the distribution agreement being followed in the European/Asian Union would be considered for all cases.
Minimum Sales Quota:
The minimum amount would be discussed and decided by the manufacturer and the distributor together, prior to confirming the Agreement. Once decided, it can only be modified with consent from both the parties. Taking an example:
If X product units have been decided to get distributed by the manufacturer as well as the distributor, the same number of product units shall be worked upon but the choice of date and location of the task to be performed will be the distributor’s choice.
X product units shall remain a part of the contract thereafter, and the number of product units cannot be change by either of the parties alone.
Orders and Prices:
The price in which the product would be purchased by the distributor from the manufacturer would be decided in the beginning of the Agreement and would stay the same till the termination. All the applicable charges (duty, charges, fees etc) would be included in the price. All the prices published by the manufacturer will not be subject to change during the entire term of the Agreement. When a distributor needs to place an order for more number of product units, he/she needs to do the same in writing, addressing the manufacturer.
Note: All prices quoted herein are in United States Dollars.