SSS · Distribution Network Model Design

Can we change the model later?

Yes, a distribution model can be changed later, but the transition has to be planned with the existing network’s accrued expectations and the compensation risk under control. Moving from ex…

Updated · July 20261 min readCategory · Distribution Network Model Design
Short answer

Yes, but the transition must be planned by managing the existing network’s vested expectations and goodwill-indemnity risks. An abrupt change of model is an invitation to mass disputes.

Yes, a distribution model can be changed later, but the transition has to be planned with the existing network’s accrued expectations and the compensation risk under control. Moving from exclusive dealership to selective distribution, or to direct sales, triggers the termination or amendment conditions of the contracts in force and the obligation to allow a reasonable period under the Turkish Code of Obligations (No. 6098).

For distributors who have been in place a long time and have won customers for the brand, a goodwill indemnity can arise. Changing the model abruptly and across the whole network multiplies the risk of simultaneous disputes and of bad publicity. In practice the transition runs on adequate advance notice, a staged calendar, the transfer of stock and warranty obligations, and offers put in writing. The competition law effect of the change — new territory or channel restrictions — should be assessed beforehand as well.

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Distribution Network Model Design

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