Who pays What?

1. Brand searching for Distributor

 

The SB client is a Brand searching for a new Distributor, Licensee or Sales Agency (hereafter referred to as Distributor). Here is what happens:-

  • SB contacts potential Distributors in confidence and asks whether they are interested in working with the Brand.

  • SB gives the names of interested Distributors to the Brand in confidence.

  • SB Consultant visits interested Distributors and creates confidential Business Report.

    • The Brand pays SB travel expenses for these visits.

  • SB and Distributor each sign Terms of Reference and the Distributor pays the Registration Fee and becomes a registered client.

  • SB recommends Distributor to Brand.

  • SB co-ordinates the successful implementation of the Agreement between the Brand and the Distributor for the first three years of the Agreement.

  • The Brand and the Distributor both pay the SB Success Fee.

2. Distributor searching for Brand

 

The SB client is a Distributor, Licensee or Sales Agency (hereafter referred to as Distributor) searching for a new Brand. Here is what happens:-

  • SB contacts potential Brands in confidence and asks whether they are interested in working with the Distributor.

  • SB gives the names of interested Brands to the Distributor in confidence.

  • SB Consultant visits interested Brands and creates confidential Business Report. The Distributor pays SB travel expenses for these visits.

    •

  • SB and the Brand each sign Terms of Reference and the Brand pays the Registration Fee and becomes a registered client.

  • SB recommends Brand to Distributor.

  • SB co-ordinates the successful implementation of the Agreement between the Distributor and the Brand for the first three years of the Agreement.

  • The Distributor and the Brand both pay the SB Success Fee.

Registration Fee and Success Fee

 

SB charges a one-off client Registration Fee of EUR 250. The Registration Fee is then refunded to the client against the first payment of the Success Fee.

 

SB charges a Success Fee, based on 1% of the actual Sales over the first three years of the Distribution Agreement.

 

Definitions

For the avoidance of doubt, the following definitions apply:-

 

Distributor – Registered Company which purchases product designed by the Brand, either directly or from approved sourcing factories, stores product in their own or third-party warehouse, and sells product to retailers in their own Country. Company retains all trading profit and is totally responsible for stock/inventory and debtors/receivables.

Licensee – Registered Company which designs product approved by the Brand, purchases product from approved sourcing factories, stores product in their own or third-party warehouse, and sells product to retailers in their own Country. Company retains all trading profit and is totally responsible for stock/inventory and debtors/receivables.

Distributor-Licensee – Registered Company which acts as both a Distributor and a Licensee for the same Brand in the same Country at the same time.

Sales Agency – Registered Company which employs a team of sales representatives and/or sales agents, who cover all accounts in one Country. Company acts on behalf of the Brand and sells product owned by the Brand to retailers in own Country. Company receives an agreed sales commission of x% from the Brand and is not responsible for either stock/inventory or debtors/receivables.

Sales Agent – Self-employed person who receives sales commission of x% from Brand.