What is the difference between a Distribution Agreement and a Wholesale Agreement?

A distribution agreement and a wholesale agreement are both contracts that govern the sale and distribution of goods, but there are some key differences between the two:

1. Parties Involved: A distribution agreement is typically between a manufacturer or producer of goods and a distributor, who takes ownership of the products and sells them to retailers or end-users. A wholesale agreement, on the other hand, is typically between a manufacturer or producer and a wholesaler, who purchases products in bulk and resells them to retailers or other businesses.

2. Ownership and Control: In a distribution agreement, the distributor takes ownership of the products and assumes the risk of selling them to end-users. The manufacturer typically has less control over how the products are sold and marketed. In a wholesale agreement, the wholesaler does not take ownership of the products, but rather acts as an intermediary between the manufacturer and retailers. The manufacturer may have more control over how the products are sold and marketed in a wholesale agreement.

3. Pricing and Quantity: In a distribution agreement, the manufacturer typically sets the price and quantity of products that the distributor will purchase. The distributor may have some flexibility in setting prices for end-users, but generally must adhere to the manufacturer's pricing guidelines. In a wholesale agreement, the manufacturer may offer different pricing and quantity options to the wholesaler, who can then set their own prices for retailers.

Overall, the key difference between a distribution agreement and a wholesale agreement is the level of control that the manufacturer has over the sales and distribution of their products. A distribution agreement gives more control to the distributor, while a wholesale agreement gives more control to the manufacturer.