Hello everyone,
Our company distributes free co branded tissue papers which is basically tissue papers with advertisement printed on it.
We're currently in talks with shopping centers in distributing tissue papers inside their premise whenever they have any events going on. Yes, we want to distribute them specifically inside instead of outside their premise or road side.
We're going into contract talks soon and I plan to provide contracts that span over 1 year, 2 year and 4 year to secure our exclusivity and other terms and conditions with the malls.
Whereas for 1 year contract the malls will receive lower incentive and 4 year contract will gives them a higher incentive per distribution to encourage the malls to commit to a longer working relations with our company.
They are insisting of an opt-out option in the contract which basically made the contract span of 1 year of 4 year meaningless as they can always opt for 4 year contract which gives them the higher incentive but can still opt-out within the 4 year contract.
I'm looking for leverage on the contract such as if they opt for 1 year and wants to discontinue they'll need advance 2 months notice and if they opt for 4 year and wants to discontinue they'll need advance 8 months notice and so on..
Can you guys help me out in figuring out what other form of leverage I can get in respect of making the contract span meaningful?
Thanks for reading
Best regards
Josh





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