Commercial Contracts

Two agreements decide what your margin actually is. The one with your co-man, and the one with the retailer.

Most brands sign both off the other side's template.

The co-man agreement settles who owns the formula, whether they can run it for someone else, and what happens when they miss a run in your biggest quarter. The retailer agreement settles chargebacks, fill rate penalties, markdown allowances, and who absorbs it when a shipment lands late.

Both usually get signed at a moment when you needed the capacity, or needed the door, more than you needed the terms. We read them the way a buyer's counsel will read them later.

Real Industry Insight

The clause that most often costs a brand real money is assignability.

A co-man agreement that does not survive a change of control hands your manufacturer a seat at your exit table you never meant to give them. It is one sentence, it is invisible in a term sheet, and it is among the first things a buyer's counsel checks.

Exclusivity does the same thing on a slower clock. It reads as protection the week you sign it, and as a cap on your supply chain two years later when you need a second facility to hold a national rollout.

Neither shows up in a monthly report. They show up when someone is trying to buy you, or when a co-man misses a run and you find out what your remedies actually are.

What We Handle

This is one function of an in-house legal department.
Our clients engage us across several.

Learn more about what we do