Territory Exclusivity Policy

Below is a clear, enforceable Territory Exclusivity Policy for Crown Organic Biofertilizers Inc. (COBI).
This is designed to protect serious distributors, prevent price wars, and give COBI control and flexibility as you scale nationwide.

📍 COBI TERRITORY EXCLUSIVITY POLICY

Crown Organic Biofertilizers Inc. (COBI)
Effective Date: ____________

1. POLICY OBJECTIVE

The Territory Exclusivity Policy is established to:

  • Protect accredited distributors and dealers from unfair competition
  • Encourage market development and investment at the local level
  • Maintain price discipline and brand integrity
  • Ensure efficient coverage and farmer support nationwide

COBI grants exclusivity as a privilege, not an automatic right.

2. TYPES OF TERRITORY APPOINTMENT

2.1 Non-Exclusive Dealer

  • May sell COBI products without territorial protection
  • Competes openly within the market
  • No guaranteed protection from overlapping dealers

2.2 Exclusive Dealer / Distributor

  • Granted exclusive selling rights within a defined territory
  • Protected from appointment of other dealers in the same territory
  • Subject to strict performance, pricing, and compliance requirements

3. TERRITORY DEFINITION

Territories may be defined as one or more of the following:

  • Barangay
  • Municipality
  • City
  • Province
  • Region

The approved territory shall be explicitly stated in the Dealer Agreement.

4. REQUIREMENTS FOR EXCLUSIVITY

To qualify for exclusive territory rights, a dealer/distributor must meet all of the following:

4.1 Minimum Purchase Commitment

  • Monthly / Quarterly / Annual minimum purchase volume (as agreed)
  • Example benchmarks:
    • Municipal level: ₱100,000–₱250,000 per quarter
    • Provincial level: ₱300,000–₱500,000 per quarter

4.2 Market Development Obligations

  • Active promotion of COBI products
  • Participation in demos, field trials, or farmer trainings
  • Presence in agri-supply outlets or farm networks

4.3 Price Discipline

  • Strict adherence to COBI SRP
  • No undercutting, dumping, or cross-territory discounting

4.4 Brand & Compliance

  • Proper use of COBI branding and materials
  • No unauthorized repacking or claims
  • Compliance with Philippine laws and regulations

5. EXCLUSIVITY PROTECTION

When exclusivity is granted, COBI shall:

  • Not appoint another exclusive dealer within the same territory
  • Discourage cross-territory selling by other authorized dealers
  • Support the exclusive dealer with:
    • Priority supply allocation
    • Demo and technical support (subject to availability)
    • Local marketing coordination

6. LIMITATIONS OF EXCLUSIVITY

Exclusivity does NOT prevent COBI from:

  • Selling directly to:
    • Government agencies (LGUs, DA, DENR, SUCs)
    • National accounts and strategic projects
    • Corporate or plantation accounts operating across regions
  • Conducting pilot projects or demonstrations
  • Selling online or through national channels (unless otherwise agreed in writing)

Where possible, COBI may coordinate with the exclusive dealer for fulfillment or commissions.

7. PERFORMANCE REVIEW

  • Exclusivity is reviewed quarterly or semi-annually
  • COBI reserves the right to request:
    • Sales performance reports
    • Market activity evidence
    • Inventory and pricing compliance

Failure to meet targets may result in:

  • Written warning
  • Downgrade to non-exclusive status
  • Territory reduction

8. VIOLATIONS & PENALTIES

Grounds for Immediate Revocation of Exclusivity

  • Price undercutting or SRP violation
  • Selling outside assigned territory without approval
  • Brand misuse or misrepresentation
  • Fraud, unethical practices, or legal violations

Penalties

  • Loss of exclusivity
  • Suspension of supply
  • Termination of Dealer Agreement

9. TERRITORY EXPANSION

Exclusive dealers in good standing may apply for:

  • Territory expansion
  • Regional or provincial master distributorship

Approval is subject to:

  • Past performance
  • Financial capacity
  • Market coverage capability

10. POLICY AMENDMENTS

COBI reserves the right to amend this policy with 30 days written notice.
Any amendments shall apply prospectively.

11. GOVERNING LAW

This policy shall be governed by the laws of the Republic of the Philippines.

🛡️ CORE PRINCIPLE

Exclusivity is earned, protected, and renewable—never permanent nor automatic.

🔧 OPTIONAL NEXT DOCUMENTS I CAN PREPARE:

✅ Exclusivity Rider (Annex to Dealer Agreement)
✅ Minimum Purchase Commitment Schedule
✅ Territory Map Template (per province / city)
✅ Dealer Violation & Sanctions Matrix
✅ Distributor Pitch Deck (Exclusivity-focused)

Just tell me what you want next and I’ll lock the system in place.