Contracts

Contracts
Clients need to understand how to fill out (what to fill out and what not to fill out) relating to the contracts for brokers, distributors and retailers.  Each sub-set has a need for having food companies fill-out and sign contracts.  The Lemonaders Team helps clients understand the different parts of their contracts and what to be aware of.  There are parts of these contracts that may not need to be filled out or committed to.

Broker Contracts
A broker contract basically discusses the product representation, the territories covered, the accounts covered, the agreed upon percentages (usually 5%) for coverage and other related subjects. The broker contract should have a list of accounts that are excepted out if the brand group has others covering them in the same territory as the new broker. The broker may also ask for a retainer (for a limited time) to offset the costs for pioneering the brand. The retainer usually goes away once the percentage of sales is equal or better to the retainer.

Distributor Contracts
Distributors have a set list of needs (from a new vendor) including product insurance (with them named as well), signed policies and procedures documents, broker details, copy of vendor’s blank invoice, signed W9 forms, tax ID details, signed hold harmless agreements, bio-terrorism forms, product detail forms, price lists and more.  The distributor will also possibly ask for commitments to their trade shows, the ad programs, extended open order terms, details on distributor pricing, shipping and receivable details, product returns, spoilage or damages, future discontinued items, product recall procedures and other possible subjects.

Retailer Contracts
Very similar to a distributor’s contract, a retailer’s contract also has a set list of needs (from a new vendor) including product insurance (with them named as well), signed policies and procedures documents, broker details, copy of vendor’s blank invoice, signed W9 forms, tax ID details, signed hold harmless agreements, bio-terrorism forms, product detail forms, price lists and more.
The retailer will also possibly ask for commitments to their the ad programs, extended open order terms, details on opening order pricing, shipping and receivable details, product returns, spoilage or damages, future discontinued items, product recall procedures and other possible subjects.