Full Definition of Agency and Distributorships Law

The legal focus of agency agreements and distributorships revolves around the relationship or agreement to market under the name or brand of a distributor. An agency and distribution agreement typically includes a limited time period, a specific region or territory, and the products and services sold by the distributor, as well as clauses related to licensing, advertising and promotion, trademarks and patents, sales quotas and liability for damages.

Legitimate distributorships and franchises can be profitable forms of business enterprise. Examples include fast-food franchises and new car dealerships, which offer great opportunities to those willing to invest substantial amounts of money and time to operate such businesses. Distribution agreements may include clauses related to trademarks, sales quotas, liability for damge in transit, licensing, promotion of product sales, and other issues.