This clause says whether you can hire other companies to help you distribute or sell the product. For example, if you're a distributor in France, can you hire a local sales agent to help you? This matters legally because it affects who can legally sell the product and who the supplier can pursue if something goes wrong. Without permission to use sub-distributors, you cannot legally hire them—doing so would breach the contract. This clause protects the supplier's brand by controlling who touches their product.
If you plan to use sub-distributors (agents, resellers, or retailers), insist on explicit permission in writing—don't assume it's allowed. Negotiate for the right to use them without getting approval for each one, but agree to tell the supplier who they are. Add a clause saying you remain responsible for what your sub-distributors do, so the supplier knows you're controlling quality. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause says whether you can hire other companies to help you distribute or sell the product.
Why should I care about this clause?
For example, if you're a distributor in France, can you hire a local sales agent to help you?
What are my options?
This matters legally because it affects who can legally sell the product and who the supplier can pursue if something goes wrong.
How does this affect small businesses?
Without permission to use sub-distributors, you cannot legally hire them—doing so would breach the contract.