Document background
The Master Distributor Agreement is a crucial commercial contract used when a manufacturer or supplier wishes to establish a primary distribution channel in Canada through a master distributor who will take responsibility for product distribution in specified territories. This agreement is particularly important in the Canadian market where businesses must navigate both federal and provincial regulations. The document typically includes comprehensive terms covering appointment rights, territorial exclusivity, performance metrics, and compliance with Canadian competition laws. The Master Distributor Agreement serves as the foundational document governing the ongoing relationship between the parties, establishing clear guidelines for product distribution, pricing mechanisms, intellectual property usage, and dispute resolution procedures. It's especially relevant in situations where the supplier wants to maintain control over their distribution network while delegating significant distribution responsibilities to a capable partner in the Canadian market.
