Distribution Agreement Termination Letter Sample

When it comes to terminating a distribution agreement, it is important to do so in a professional and respectful manner. A termination letter is a necessary step in the process, and having a well-written sample can make the task much easier.

Here is a sample distribution agreement termination letter that can be used as a guide:


[Distribution partner name]


[City, State ZIP]

Re: Termination of Distribution Agreement

Dear [Distribution partner name],

I regret to inform you that we have decided to terminate our distribution agreement, effective [date]. This decision was not made lightly, but after careful consideration, we have decided that it is in the best interest of our company.

As our distribution partner, you have played a critical role in the success of our products, and we are grateful for your contributions. However, we have come to the conclusion that it is no longer feasible to continue the agreement.

We wish to assure you that this decision is not a reflection of your performance or the quality of your services. It is simply a matter of business strategy and the need to shift our focus.

We kindly request that you return all products, materials, and related documentation that our company has provided to you. You are also obligated to cease all distribution and marketing activities related to our products.

We will honor any outstanding payments due to you according to the agreement, and ask that you do the same for any outstanding payments due to us.

We appreciate your understanding in this matter and wish you the best in your future endeavors.


[Your name and company]

By following this sample distribution agreement termination letter, you can ensure that the process is handled respectfully and professionally. It is important to be clear and concise in the letter, while also acknowledging the positive contributions of the distribution partner. This can help to maintain a positive relationship for any future business opportunities.