Letter of Appointment of Sole/Exclusive Distributor/Agent sample

A sole distributor is appointed by the supplier company for a particular territory. The sole distributor is the only distributor with whom the supplier deals with for that defined territory.

The supplier can not sell their products to other distributors for that same territory for which sole distributor is already appointed, but the supplier is at liberty to sell their products directly to customers on their own (viz. through their own outlets).

Whereas in case of exclusive distributor - the distributor is given with exclusive rights to sell the products of the supplier company for a particular territory as defined in the agreement between them. Here, the supplier is restricted to sell their products through any other distributors or agents or even on their own for that particular territory.

Generally, there is a "Distribution Agreement" executed between the Supplier and the Distributor for defining the scope and period of the agreement, mainly covering the terms and description on the type of goods or services, area of the territory or region, rights given to distributor, restrictions on supplier, duration of the agreement, etc.

Mostly, before the signing of the agreement, a letter of appointment is issued to the distributor, to inform the distributor about the approval from supplier and giving a brief about the products and rights.

Template of such appointment letter for sole distributor is given hereunder. Same format can be used for exclusive distributor appointment with minor modifications on agreed terms.

FORMAT

(Print on company letterhead)

Ref: .................

Date: ...............

To

(Name of the sole distributor)

(Complete Address)

(Tel. No. ..............)

(Email: ................)

Sub.: Appointment as Sole Distributor

Dear Mr. ................,

This is with reference to your letter bearing no. ............ dated ........... regarding your interest for appointment of your business concern as the sole distributor of our company for the ........ products for the ........ locality.

We thank you for your faith in our company and its products and we highly appreciate your efforts in marketing our products. We also appreciate your interest in becoming the sole distributor of our company for the said locality/region and for scaling up the sales for our mutual benefit.

We are happy to inform you that your business with name and style of M/s. .................... has been approved for appointment as sole distributor of our company for the (territory name).

Sole distributorship is given for the following types of products only:

1. ......................

2. ......................

3. ......................

The rights of sole distributorship is given to your business for a period beginning from (date) till (date).

Our company reserves the discretionary right to end the sole distributorship awarded to your business if there will be any violation by your business of our company policies. Company policy documents are enclosed herewith for your perusal. Please do make your concerned staff aware of these terms.

Please note that this exclusivity of rights is given only to restrict our company from appointing other distributors for the said locality and it will not prevent us from selling the goods from our own outlets.

We are quite hopeful that your business will strive hard to do better in sales and will meet the targets in time.

We wish you all the very best in your venture. Have a nice day/evening!

Yours faithfully,

For (Supplier company name),

    signature

(Name of the Officer)

(Designation)

(Department Name)

Encl: As above