A retail alliance agreement is a business document drafted when two retails companies form an alliance and agrees to do business together. It is necessary to draft an agreement as the document works as a proof that both the retail companies are working in alliance with each other.
There are various points that are required to be mentioned in the agreement without which the document is incomplete. They are as follows:
- Details of both the retail companies which include the kind of products sold by them and the countries in which they run their business. Sometimes it is necessary to mention the address of the head office and the website address.
- The kind of alliance that both the parties will have.
- The percentage in which the capital expenditure will be shared.
- The ratio in which the profit and loss will be shared.
- The termination date of the agreement.