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By LegalEdge News

Negotiating manufacturing agreements for FMCG – Top 10 Tips

Manufacturing agreements are one of the first contracts that you’ll need in the FMCG world. And they can be challenging because manufacturers can hold the upper hand if they’re large/you’re a small business and/or you don’t have many options. 

Our Rebecca De Lorenzo, who has loads of FMCG experience, has some top tips for making it easier and ensuring this key contract helps set you up for success.

1. Do your due diligence before you decide on a manufacturer

2. Don’t appoint a manufacturer on an exclusive basis if you don’t have to

3. Be crystal clear about the end-product (and when you want it)

4. Make sure the contract protects against nasty surprises

5. Don’t sign up to minimum volumes (monthly/yearly/rolling) without very careful thought

6. Protect your Intellectual Property (IP)

7. Make sure you have exit (or extension) rights

8. Include a right to audit the manufacturer’s records and processes

9. Think about the unthinkable

10. Don’t’ forget insurance

And finally…

Any ‘standard contract’ provided by the manufacturer will be drafted to benefit them, so don’t sign without reading it and getting advice/help. Investment in good legal advice to protect your business will pay further down the line. At a minimum it’s an insurance policy.

How can we help you?

Rebecca can help by reviewing your manufacturing contracts, advising on drafting and negotiating better terms. Get in touch on

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