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Distributor Evaluation for Philippines

Distributor Evaluation Template for Philippines

A comprehensive legal document governed by Philippine law that establishes the framework and procedures for evaluating potential distributors before entering into a formal distribution agreement. The document outlines evaluation criteria, information requirements, confidentiality obligations, and assessment processes while ensuring compliance with Philippine competition laws, consumer protection regulations, and commercial legislation. It provides legal protection for both parties during the evaluation period and sets clear expectations regarding the evaluation process without creating binding distribution obligations.

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What is a Distributor Evaluation?

The Distributor Evaluation document serves as a crucial preliminary step in establishing distribution relationships in the Philippines. It is typically used when a company needs to assess potential distributors' capabilities, financial stability, market reach, and compliance with local regulations before entering into a formal distribution agreement. The document provides a structured framework for gathering and evaluating information about potential distributors while protecting both parties' interests during the evaluation process. This agreement is particularly important in the Philippine context, where distribution relationships are subject to various regulations including the Philippine Competition Act, Consumer Act, and local commercial laws. The evaluation process helps companies make informed decisions about their distribution networks while maintaining legal compliance and managing risk.

What sections should be included in a Distributor Evaluation?

1. Parties: Identification of the evaluating company and the potential distributor being evaluated

2. Background: Context of the evaluation process and business relationship

3. Definitions: Key terms used throughout the agreement

4. Purpose and Scope: Objectives of the evaluation process and its intended coverage

5. Evaluation Period: Duration of the evaluation process and key milestone dates

6. Evaluation Criteria: Core criteria against which the distributor will be evaluated

7. Information Requirements: Documentation and information the potential distributor must provide

8. Confidentiality Obligations: Protection of confidential information exchanged during evaluation

9. Evaluation Process: Step-by-step procedure for conducting the evaluation

10. Rights and Obligations: Responsibilities of both parties during the evaluation period

11. No Commitment: Clear statement that evaluation does not guarantee future appointment

12. Costs and Expenses: Responsibility for costs incurred during evaluation process

13. Termination: Circumstances under which evaluation can be terminated

14. Governing Law: Specification of Philippine law as governing law

15. Entire Agreement: Standard entire agreement clause

What sections are optional to include in a Distributor Evaluation?

1. Site Visits: Procedures for physical inspection of distributor facilities, if required

2. Product Testing: Requirements for sample distribution or market testing during evaluation

3. Financial Audit Rights: Right to audit distributor's financial records during evaluation

4. Insurance Requirements: Specific insurance coverage required during evaluation period

5. Intellectual Property Protection: Additional IP protections if sensitive information is shared

6. Employee Non-Solicitation: Prevention of employee poaching during evaluation

7. Dispute Resolution: Alternative dispute resolution procedures if preferred over court litigation

8. Local Compliance: Specific local regulatory compliance requirements if operating in special economic zones

What schedules should be included in a Distributor Evaluation?

1. Schedule 1 - Evaluation Metrics: Detailed evaluation criteria and scoring system

2. Schedule 2 - Required Documentation: List of all documents and certificates required from distributor

3. Schedule 3 - Territory Definition: Geographical areas covered in the evaluation

4. Schedule 4 - Timeline and Milestones: Detailed evaluation timeline and key dates

5. Schedule 5 - Compliance Checklist: Regulatory and business compliance requirements

6. Schedule 6 - Financial Requirements: Minimum financial criteria and reporting requirements

7. Appendix A - Due Diligence Questionnaire: Detailed questionnaire for distributor completion

8. Appendix B - Performance Benchmarks: Industry standards and expected performance levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Evaluation Form

Cost

Free to use
Relevant legal definitions





































Clauses






























Relevant Industries

Consumer Goods

Pharmaceuticals

Electronics

Food and Beverage

Automotive

Industrial Equipment

Retail

Technology

Healthcare

Construction Materials

Fashion and Apparel

Agricultural Products

Relevant Teams

Legal

Sales

Business Development

Operations

Finance

Compliance

Supply Chain

Commercial

Risk Management

Procurement

Distribution

Relevant Roles

Chief Commercial Officer

Sales Director

Business Development Manager

Distribution Manager

Legal Counsel

Compliance Officer

Supply Chain Manager

Operations Director

Chief Financial Officer

Market Development Manager

Regional Sales Manager

Procurement Manager

Channel Partner Manager

Commercial Contracts Manager

Risk Management Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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