How do I Terminate a Manufacturer's Representative Agreement?

Terminating your manufacturer's representative contract can be very simple.
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Sometimes being a manufacturer's representative isn't all you had hoped it would be. If you represent multiple lines of products and find that one particular manufacturer has a poor quality of product or is difficult to work with, you might make a break to save your reputation with your clients. Unfortunately, you have a representation agreement you need to terminate. The good news is it can probably be done fairly easily.

Step 1

Read your contract carefully, looking for the section regarding termination. Assuming there is a clause for termination, you'll need to follow the protocols outlined. Usually there is a required notice period included, such as 30, 60 or 90 days. Some contracts even allow termination at any time.

Step 2

Hire an attorney to draft your termination letter. While you can certainly write your own letter to express your intention to terminate, you want to make sure it's done right. Let a professional do it in a way that will cover you against any unforeseen problems.

Step 3

Draft an agreement to terminate your representation of your client if your existing contract doesn't include a termination clause. Again, consult an attorney to make sure your contract termination amendment covers everything it should.

Step 4

Send your termination notice or amendment to your client by trackable delivery requiring signature. Both the postal service and private couriers offer this service.

Step 5

Return all proprietary materials to the manufacturer. Include catalogs, brochures, samples and anything else you may have been given to help in your sales efforts. Take the manufacturer's logo and information off any of your own materials so you aren't liable for falsely representing your former client once the termination goes into effect.

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