A clear manufacturing agreement prevents most disputes between a brand and its factory. Reviewing the key clauses before you sign protects your money, your timeline and your formula.

Key takeaways

  • Pin down price, MOQ, lead time and payment terms.
  • Define formula ownership and confidentiality.
  • Set quality standards and what happens if a batch fails.

Commercial terms

The contract should state unit price, MOQ, lead times, payment schedule and how price changes are handled. Vague commercial terms are the most common source of friction.

Ownership and confidentiality

Specify who owns bespoke formulas and artwork, and include confidentiality obligations. This matters most if you ever need to move production elsewhere.

Quality and remedies

Agree the quality specification, QC and acceptance process, and the remedy if a batch is out of spec - rework, replacement or refund. Knowing this in advance keeps a bad batch from becoming a bad relationship.

Guidance compiled by the OEMHallmark research desk. Always verify current certifications, MOQs and terms directly with each manufacturer.