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TN/SIT/36
Edition 2027 · effective 1 January 2027

Cross-border · International distribution strain

A distributor and a brand built a market together. Now they disagree about its future.

Distribution and agency relationships carry local law protections and long investment. Mediation helps restructure or exit on fair terms.

§ 01What it looks like

Recognise it early. The earliest moment is the cheapest.

Early signals

What you notice first

Small, and easy to explain away.

  • Targets missed
  • Brand appoints new partners
  • Termination notices
  • Compensation claims under local law
What is at stake

What waiting can cost

Usually more than the original issue.

  • Market presence
  • Investment made
  • Customer relationships

§ 02The Neutral route

Usually: Mediation.

Mediation can produce transition arrangements that protect customers and both parties.

Human checkpoint. Guidance, not legal advice. You choose the role; the Neutral discloses conflicts and accepts a mandate before any file is shared.

§ 03The steps

What a good process looks like.

  1. Check local law on terminationBefore anything else01
  2. Propose mediation earlyThe moment independence enters02
  3. Evaluate compensation independentlyWhere the work is done03
  4. Agree a transition planSo it holds04

§ 04Prepare and avoid

What to bring. What to leave out.

(Bring)

01

Distribution agreement

02

Sales data

03

Local law advice

04

Transition options

(Avoid)

✕

Abrupt termination

§ 05Your version

Every situation is different. Describe yours.

Write in your own words. Leave out names and confidential details.

§ 06Related

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