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BuyingExpert answer · 1 min read

How do I check which tire brands a shop is locked into by its distributor?

Ask for every distributor agreement and read for exclusivity, minimum purchase promises, and any clause about a change of owner. Then compare what the shop actually stocks against what the paperwork requires. The gaps show where the shop is bound and where it is only used to buying.

Start with the paper. Ask the seller for each agreement with a tire distributor, plus any rebate or programme letters. Look for words like exclusive, preferred, minimum volume and term. Note who can end the arrangement and on what notice, because a tied supplier who can walk away is a different thing from a tie you can negotiate.

Then compare paper with practice. Walk the racks and check recent purchase orders. If the shop carries brands from three suppliers while the contract names one, ask how that works and whether anyone has complained. A habit is easier to change than an obligation.

Last, ask what happens at a sale. Some agreements pass to a buyer, some need the distributor’s consent, and some end. Speak to the distributor, with the seller’s agreement, before you commit. If your plan includes adding a brand or leaving a supplier, make sure the terms allow it. Have your lawyer read anything that restricts what you may stock. Also ask whether any brand supports the shop with training, signage or co-op advertising that would disappear if you changed course. Those perks are easy to overlook and they affect how free you really are to choose.

Key takeaways

  • Read for exclusivity, minimums and what happens at a change of owner.
  • Compare purchase orders with what the contract says the shop must buy.
  • Talk to the distributor before you commit to the purchase.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026
  3. 03
    Business Development Bank of CanadaGovernment
    How to diversify your supply chain
    bdc.ca·Checked Oct 30, 2026

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