Agency, distribution and franchising agreements are alternative routes to market for companies looking to expand into Cyprus, and consequently to Europe. These types of arrangements give companies the opportunity to grow their business with the minimal investment and risk associated with setting up a corporate vehicle.
When do you need agency agreements, distribution agreements or franchising?
When a company has developed intellectual property or a patent on a specific product it is challenging to protect it while trying to sell it in the market. If the company cannot protect the product whilst selling it, a good option is to make agreements with other companies to accelerate and protect distribution.
A distribution agreement is an agreement in terms of which the manufacturer grants the distributor the rights to distribute the manufacturer’s products. The distributor can be appointed on an exclusive or non-exclusive basis and usually a specific territory is allocated to the distributor.
In an agency agreement, the agent carries out certain obligations on behalf of the principal. Agency and distribution are concepts that are often used interchangeably.
On the other hand a license agreement is an agreement where the licensor provides the licensee with permission to exercise a specific right which the licensor possesses.
Franchise agreements grant the right to carry on business under the franchisor’s business system and trademarks.
Whichever type of agreement suits your company, Fine Life Limassol can help you realize it.
Due to the fact that the volume of work and the difficulty of the case is unique each time, we agree the price prior and reflect it in our engagement letter, based on the prices given by the Cyprus Bar Association, which is 150€ per hour (plus VAT).