An Exclusive Distributor Agreement is a contract between a supplier and a distributor that grants the distributor exclusive rights to supply the supplier’s products in a given geographic location. This type of agreement helps cultivate brand loyalty, while ensuring that the supplier has a steady stream of sales and income. The agreement provides both parties with benefits, such as defining service level expectations and helping them avoid legal disputes. It also allows the distributor to negotiate favorable terms, such as discounts and minimum order requirements. With an Exclusive Distributor Agreement, suppliers and distributors can reach mutually beneficial decisions that help ensure long-term success.