Commercial concession

The introduction to the market and commercial distribution of finished products with high added value is an activity that involves certain capabilities, particularly in terms of logistics and marketing, which are, in most cases, difficult to reconcile with the specific needs inherent in the production system. Therefore, many, if not most, manufacturers of these products, in open or even regulated markets, opt for indirect distribution, either through subsidiaries created and structured for this purpose, or through agents with or without representation, or through agreements with economic units with adequate organization and territorial implementation and market knowledge that operate independently. These agreements take various forms, from franchising (franchise agreement) to commercial concession, including mediation and commission. However, within the scope of this article, we will focus on a modality adopted by large brands, which are concerned and intend to regulate the supply of their products to end customers, even if they do not maintain direct relationships with them. This is the case with commercial concession and exclusive distribution contracts.

This opinion piece focuses specifically on the termination of this type of contract and the rights of clients.