10 Questions Distributors Ask Before Signing an OEM Agreement
An OEM agreement locks you in for years. Before you sign, work through the questions distributors ask before signing an OEM agreement — the ten answers decide whether you build a brand or buy a headache.
Ownership, Exclusivity and Your Brand
1. Who owns the formula? Confirm whether the recipe is exclusive to you or shared with other buyers. 2. Is the brand yours? Your trademark should be printed, not licensed from the factory. 3. Can the factory sell the same product under its own brand to your market? If yes, your margin will erode. 4. Is exclusivity geographic or product-line based — and how is it enforced in writing?
MOQ, Pricing and Lead Times
5. What is the real MOQ per SKU and per color — and is it negotiable for a first order? 6. How are price adjustments handled when raw materials move? A price-lock clause protects your catalog pricing. 7. What is the confirmed lead time for production and for reorders? Ask for written commitments, not estimates. 8. Who covers tooling, artwork and packaging setup costs for your private label?
Quality, Liability and the Exit Door
9. What batch testing is done, and do you receive certificates with every shipment? If a batch fails in your market, who covers the claim — agree the liability split before signing. 10. What happens if you want to exit? Know the notice period, minimum-volume obligations and who keeps the packaging tooling.
Ask Us Directly
When you evaluate us as an OEM partner, we answer these questions in writing before any commitment — formula ownership, exclusivity, MOQ and batch certificates are all in our standard agreement. Ask us for the full OEM cooperation terms.
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