Buyer questions · Purchase decisions
For our exclusive agency of this new product, how should we structure mold cost sharing and formula exclusivity to best protect a small brand's interests?
If the brand bears mold fees, ownership stays with the brand; the factory only stores them with clear handover terms. Formula exclusivity must be tied to minimum annual volume and a review period, converting to non-exclusive if targets are missed. Liability caps at invoice value, excluding indirect losses; quality claims follow a 30-day window with retained samples. Clauses follow latest official texts; specifics per written quotation.
1Mold Cost & Ownership
Brand funds mold fees; ownership remains with brand. Factory stores molds. Idling terms: clear all dues, brand pays dismantling/shipping for handover. If shared, factory owns; brand gets exclusive use.
2Exclusivity Pricing & KPIs
Exclusive bottle or formula must bind to annual minimums and review periods. Failure auto-converts to non-exclusive. Compensation must offset factory's opportunity cost, preventing free capacity lock.
3Risk & Dispute Control
Liability capped at invoice value, excluding indirect losses. 30-day quality claim window with dual retained samples for third-party testing. Chinese law, Guangzhou arbitration/litigation. Client bears formula source legality risks.
Follow-up questions
- Q:How to set deposit and balance ratios?
- A:For new clients, use deposit plus pre-shipment balance. Deposit must cover materials and tooling. Specific ratios per written quotation.
- Q:Can formula change during exclusivity?
- A:Formula changes require reassessing exclusivity pricing and volumes. Original exclusivity lapses; new terms must be re-bound.
Updated 2026-09-18
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