Fashion collaboration has become the norm in the fashion industry. Various African Fashion brands believe a partnership deal will be an effective way to push their brand forward.
They are totally right!
It is key you understand what a partnership agreement entails before signing or creating a partnership agreement. A fashion partnership can either be a succes or a failure, it is primary that such partnership is legally binding.
A fashion business is not all glitz and glamour, with all the glitz, it is still a business and every business needs to be legally alert.
A partnership agreement is a contract between two or more parties that define how a business will be managed by the parties, what investment will be made and how they will be paid. It allows you to structure your agreement to suit the partnership/ the business. A partnership agreement allows a brand to prevent certain disputes and in case disputes arise there will be a remedy.
The agreement will cover the good times and the bad time in such business.
If you plan to collaborate with a fashion SME or a top fashion brand, it is smart to create a partnership agreement and if you just got a deal with a top fashion brand or a fashion SME.
That’s great, congratulations!
Before signing there is a need to understand the clauses in the agreement, get legal advice from a lawyer before putting your signature down.
It is better to be safe than sorry…
In creating a partnership agreement there are some nitty-gritty details which must be in such agreement, This post will engaging you on few details required. They include;
●Business Name and its purpose
It is essential that the name of the business is contained in such agreement, also there should be a statement of the brand’s purpose.
●Partners Area of Responsibility
There is the need to indicate the responsibilities of your prospective partner, indicate what responsibility your brand will cater for. Also, there is also a need to indicate the amount of time expected of the partner to commit.
It is vital to consider what value will be gained on both sides, what value will the prospective partner gain and what will your brand be gaining? It is necessary to specify the contributions/ value (investment, cash physical property, intellectual property)
●Profit & Loss Distrbution
When there is a loss how will such be handled? When there is a profit how will it be distributed?
The agreement should contain a method of resolving disputes. Some ways to handle disputes in partnership comprises; mediation (working with a mediator can help partners come to an agreement , then arbitration can be considered. If things be contentious and there is no progress, litigation can be applicable.
Everything that has a begining most likely has an end. It is primary that a provision is made in the agreement in case the partner exit the partnership willing or reluctantly. The exit tactics ought to be specified in the agreement
This article is for informational purpose only and not for the purpose of providing legal advice. If you have plans to collaborate with any other brand, partnership differs, so you have to consult your lawyer.