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No matter where your business fits within the cigar industry, you’re going to have a variety of agreements with other businesses and individuals. In addition to the initial agreement with your business partners, there are going to be agreements with employees, suppliers, and vendors, as well. Here are a few of the business contracts you’re likely to need for your cigar business, along with some tips on enforcing them.
Worker Contracts
Whether you’re a tobacco producer, cigar manufacturer, distributor, or retailer, you’re going to want at least some of your workforce subject to one or more worker contracts. These may apply to both employees and independent contractors, and they could potentially include:
- Non-compete agreements
- Non-disclosure (confidentiality) agreements
- Employment contracts
The goal of these contracts is to outline worker expectations, prevent workers from unfairly competing against you should they decide to leave your business, and stop them from revealing confidential information about your operations in a way that could cause you economic harm.
Sales and Marketing Contracts
These contracts state how cigars and related products should be marketed, advertised, and sold, and will largely apply to cigar manufacturers, distributors, and retailers. These legal agreements can outline the price of products, identify the promotions used to increase their sales (such as buydowns), and dictate where specific products should be placed in the store for sale.
Commercial Leases
Unless your cigar business owns something outright, such as a storefront, farm, warehouse, or cigar rolling equipment, chances are high that you’re renting that property from someone else. If so, you’ll want to be sure there’s a written commercial lease that spells out all the necessary terms of the agreement, such as rent amount, lease term, insurance requirements, and maintenance duties.
Contract Enforcement
If someone has breached their contract with you, you can sue them as an option of last resort. There are several reasons to do as much as you can to avoid a lawsuit, including the time and money litigation you’ll have to spend. There’s also the fact that you may want to continue having a business relationship with this person or entity and going to court may prevent that from happening in the future.
This is why enforcing your contractual rights sometimes involves a less aggressive approach, such as diplomatic negotiating.
Venerable Law understands the ins and outs of contracts, including their preparation and enforcement. To learn more, call us at 813-680-4530 for a no-cost discussion about your cigar business needs.
