Distribution and Agency

When it comes to entering a new market, foreign businesses sometimes wonder whether they shall operate directly, by setting-up a domestic business entity or owning an equity interest in the local entity that will distribute their products or by appointing a local agent.

At Guilmot & Bassine, we have detailed discussions to determine the pros-and cons of the various distribution structures available to the clients. We take the modalities of termination, renewal methods and consequences, exclusivity and non-compete provisions, enforceability of MFC Clauses, possible mandatory compensations or indemnities or other restrictions that may govern the distribution relationship (including the role of the principal in the politic of resale prices) into consideration.