HomeSituationsCross-borderInternational distribution strain
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.
What you notice first
Small, and easy to explain away.
- Targets missed
- Brand appoints new partners
- Termination notices
- Compensation claims under local law
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.
Mediation
The parties decide. The mediator never imposes.
Also used · AdvisoryNeutral Evaluation
You decide. The evaluator advises.
Also used · Binding only if acceptedConciliation
The parties decide whether to accept the proposal.
§ 03The steps
What a good process looks like.
- Check local law on terminationBefore anything else01
- Propose mediation earlyThe moment independence enters02
- Evaluate compensation independentlyWhere the work is done03
- 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.
§ 06Related