FRANCHISE OR SUPPLIER AGREEMENT
Negotiating an LOI right now for a company that has a specific supplier agreement that renews one year at a time. This supplier's product sales make up over 50% of revenues. Concern is losing that agreement for whatever reason after the purchase and the revenues that go with that product. Any good suggestions for how to get hooks into the agreement? My first thought was to tie the seller financing that begins after two years to whether that agreement is still in place. Any other ideas? I can't meet/talk to the supplier until after due diligence.