How do I find out which feed brands a farm supply store sells on exclusive terms?

Start with the paperwork. Ask for each dealer or supplier agreement, and look for wording about exclusive territory, minimum purchases, pricing and what happens if the ownership changes. If the seller says a line is exclusive but cannot show it in writing, treat it as unconfirmed. Your lawyer can read the terms and flag those that end on a sale.

Then look at the sales side. Ask which brands bring in the most revenue and which customers buy them. If a single brand drives a large part of the business, the supplier’s willingness to continue matters a great deal. Compare the sales data to the inventory and the financial statements to see whether the numbers fit.

Talk to the suppliers. Ask the seller to introduce you, and ask directly whether the relationship will carry on after a sale and whether anything about the terms could change. Supplier answers can differ from the seller’s account. Finally, ask what would happen if an exclusive line were lost, and whether the store has alternatives on its shelves. A store with several strong lines carries less risk. Ask as well whether any rebates or targets are attached, because a missed target can change what the store earns.

Key takeaways

• Get every supplier agreement in writing and read the exclusivity terms.
• Ask suppliers directly whether they will continue with a new owner.
• Find out how much revenue rests on each exclusive line.