Exclusive Distribution Agreement in France — No Subsidiary
An exclusive distribution agreement is the most direct route for a French or European manufacturer wanting to sell products in France without setting up a subsidiary or going through an importer. You entrust your range to a commercial agency that represents it in your name, across a defined territory and channels. Go Distribution has been in this business since 1994 in the South of France, covering the DIY, garden and hardware networks.
What is an exclusive distribution agreement?
It is a contract under which you appoint a commercial agency to prospect, negotiate and sell your products, on an exclusive basis, within a defined scope: a territory (for example the 31 départements covered by Go Distribution, from Bayonne to Marseille) and one or more distribution channels. The agent acts in your name and on your behalf: orders and invoicing remain with you.
For a sales director comparing routes into the French market, the differences are clear:
| Model | Entry cost | Control of prices and customers | Knowledge of the networks |
|---|---|---|---|
| Sales subsidiary | High (structure, salaries, social charges) | Full | To be built |
| Importer-distributor | Low | Limited (they resell at their own margin, the customers are theirs) | Variable |
| Multi-line commercial agent | None (commission on sales) | Full (sales in your name) | Immediate |
We have set out this comparison in detail in our article on exclusive distribution agreements in France, a useful companion to this page.
A clear legal framework: the commercial agency contract
The status of commercial agent is defined by Articles L.134-1 et seq. of the French Commercial Code: the agent is an independent intermediary, engaged on a permanent basis to negotiate and, where applicable, conclude contracts in the name of the principal. This framework, derived from a European directive, is well known to manufacturers across the Union.
The contract specifies the territory, the channels, the product ranges entrusted, the commission rate, the targets and the terms for ending the agreement. It is a balanced, proven framework: it protects both the manufacturer and the agent, and it can be put in place within a few weeks, without setting up any structure in France.
The stages of your agreement with Go Distribution
A distribution agreement is not just a signature. Our method follows four practical stages:
- Range analysis: a review of your products, your price positioning and the in-store competition, channel by channel.
- Channel-by-channel listing plan: garden centres, DIY superstores, builders’ merchants (Gedimat, Tout Faire, Chausson Matériaux…), industrial supplies (Setin, Foussier, Legallais, Trenois Decamps, Prolians…) and ironmongers — each network has its own contacts and its own calendar. For a detailed example, see our page on distribution in DIY superstores.
- Field visits: our 6 agents visit the points of sale, present your ranges, take orders, and run in-store activities and training for department staff.
- Regular reporting: field feedback, listing follow-up, competitive intelligence. You steer your French market with real data.
Commission-based remuneration and mutual commitments
The agency’s remuneration is a commission on invoiced sales, at a rate set in the contract according to the ranges and channels. No fixed salary, no social charges, no company car: your sales cost is strictly proportional to your turnover. This is the central argument developed in our article on why outsource your sales force.
Exclusivity binds both parties. You reserve the defined territory and channels for us; we commit to prospecting, visit frequency, feedback from the field and defending your brand on the shelf. An exclusive agreement only works if the agent has a lasting interest in building your market — which is precisely what this model guarantees.
30 years in the field, 5 channels, 1,700 points of sale
Since 1994, Go Distribution has built a network of direct relationships with department managers, merchant buyers and ironmongers across the South of France: around 1,700 points of sale covered across 31 départements, from Bayonne to Marseille. Our current principals — Rapid, SPIT, Mottez, Master Lock, Difac and Alpha Coupe — cover fixings, PPE, storage, security and tools: discover the brands we represent. From day one, your range benefits from this knowledge of the networks, which would be impossible to replicate quickly with a salaried team.
Frequently asked questions
What is the difference between a commercial agent and an importer-distributor?
An importer buys your products and resells them at their own margin: the customers and pricing policy belong to them. A commercial agent sells in your name, on commission: you keep your prices, your margins and ownership of your customer base.
How is the agency’s commission calculated?
The commission rate is negotiated in the contract, according to the ranges, expected volumes and target channels. It applies to invoiced turnover: no sales, no cost.
Can exclusivity be limited to certain channels or départements?
Yes, the scope of the agreement is freely defined in the contract: a territory, one or more of the 5 channels, part of a range. This is often the best way to test the French market before expanding.
How long does an exclusive distribution agreement last?
The duration is up to you: a fixed-term or open-ended contract with notice. In practice, getting listed in a network takes 12 to 24 months to deliver its full effect, which argues for a long-term commitment.
What happens at the end of an agency contract?
Except in cases of serious misconduct by the agent, the French Commercial Code provides for an end-of-contract indemnity compensating for the loss suffered. This point is easily anticipated when drafting the contract, with your legal adviser.
Looking to distribute your products in France?
Go Distribution places your ranges in garden centres, DIY superstores, builders’ merchants, industrial supplies and ironmongers — 30 years in the field in the South of France.
A well-constructed exclusive distribution agreement opens up the French market to you with no structural investment, alongside a partner who knows your networks from the inside. Show us your range: we will tell you frankly what it can achieve across our channels.