Distribution and Commercial Agency in Türkiye: Exclusivity, Competition, Termination and Goodwill Indemnity

Legal position last verified: 1 September 2026.

A distributor and a commercial agent are not the same legal model in Türkiye. A distributor normally purchases and resells in its own name and for its own account; an agent continuously intermediates for, and if authorised contracts on behalf of, the foreign principal. Termination, customer portfolio, non-compete, online-sales and goodwill-indemnity exposure depend on substance rather than the contract label.¹²³⁴

This guide is for foreign manufacturers, brand owners, exporters, sales leaders and legal teams appointing, replacing or terminating Turkish distributors or agents.

Core conclusion: The agreement should reflect the real sales and representation model and govern price, customers, brand, inventory and post-termination transition in measurable terms.

Who is this guide for?

This guide is for foreign manufacturers, brand owners, exporters, sales leaders and legal teams appointing, replacing or terminating Turkish distributors or agents.

Decision summary in one minute

1. Substance, not the title, determines the model

Distribution is indicated where the local party purchases products and bears pricing, inventory and credit risk; agency is indicated where it continuously sources and negotiates customers for the foreign principal. Commission, targets or exclusivity alone are not decisive.⁵⁶

Where practice departs from the agreement, agency, authority and permanent-establishment consequences may emerge. Order acceptance, invoicing and authority should be mapped in the contract.⁷⁸

2. Exclusivity, territory and online sales

Exclusivity can support investment but territorial, passive-sales, online-channel, customer-group and parallel-trade restrictions require competition-law review. Resale prices should not be fixed, and recommended or maximum prices should not become mandatory through pressure or incentives.⁹¹⁰

If the foreign supplier retains direct e-commerce, the contract should address lead allocation, channel conflict, digital advertising, marketplaces and customer-data use.¹¹¹²

3. Goodwill indemnity and possible distributor exposure

The TCC provides commercial agents with a potential goodwill indemnity where the principal continues to derive substantial benefit from customers introduced by the agent, the agent loses commission and equity supports payment. The cap and one-year assertion period are material.¹³¹⁴

The statute also contemplates analogous application to exclusive distributorship and similar continuing relationships where equitable. Distributor exposure therefore depends on customer creation, integration and termination facts.¹⁵¹⁶

4. Termination, inventory and customer transition

Termination should address more than notice and cause. Open orders, warranty, service, inventory repurchase, spare parts, brand materials, customer notices, domains and social accounts require a transition plan.¹⁷¹⁸

For immediate termination, evidence of cause, prior warnings and cure periods should be preserved. Competition, consumer and reputation effects should be managed together.¹⁹²⁰

5. Customer data, brand and compliance

Rather than asking who owns customer data, the parties should identify who processes it for which purpose. A database cannot automatically be transferred to the foreign supplier at termination without transparency, legal basis and transfer safeguards.²¹²²

Brand licences should cover quality, marketing approvals, counterfeit notices and digital-account use. Anti-bribery, sanctions, product safety and record duties should flow through the distribution network.²³²⁴

Documents and evidence the company should prepare

• Sales and order-flow chart
• Authority and signature matrix
• Customer, inventory and credit-risk allocation
• Competition/exclusivity assessment
• Customer-development and investment records
• Brand and digital-account inventory
• Termination and inventory-transition plan
• Data-role and transfer map

Contract and governance controls

• Status and independence
• Territory, channel and exclusivity
• Order acceptance and pricing
• Targets and reporting
• Brand and marketing
• Inventory, warranty and service
• Customer data and confidentiality
• Compliance and audit
• Termination, repurchase and goodwill indemnity
• Disputes and interim relief

Red flags and recurring mistakes

• Distributor signs on behalf of supplier
• Resale price becomes mandatory in practice
• Absolute ban on online sales
• Blanket advance waiver of goodwill indemnity
• No inventory/service transition
• Assuming automatic transfer of customer data

Three practical scenarios

1. Underperforming exclusive distributor

Where targets, reporting and cure periods are vague, immediate termination is contentious. The supplier documents performance, gives a proportionate cure notice and considers removing or splitting exclusivity.

2. Agent builds a valuable customer portfolio

At termination, notice, pipeline commissions and goodwill indemnity are assessed together, with lawful use and communication of customer data managed separately.

3. Distributor restricted from online sales

Platform and presentation standards may protect brand quality, but an absolute online/passive-sales ban may create competition risk. The clause is rebuilt around selective-distribution principles.

A 30–60–90-day implementation plan

Days 1–30 — scope and visibility

• Build the distribution and agency scope and role matrix.
• Collect the relevant contracts, permissions, data and decision records.
• Assign owners to urgent gaps and threshold questions.

Days 31–60 — evidence and contracting

• Complete missing permissions, policies, schedules and records.
• Obtain management approval for the decision matrix.
• Test group-company and supplier flows against the chosen model.

Days 61–90 — testing and governance

• Run a practical scenario or tabletop exercise.
• Report open risks with owners and closure dates.
• Establish annual and event-driven review triggers.

Frequently asked questions

What is the main difference between a distributor and an agent?

A distributor buys and resells in its own name; an agent continuously intermediates for the foreign principal.

Can a distributor claim goodwill indemnity?

The TCC contemplates analogous application to exclusive distributorship where equitable; the actual relationship must be assessed.

Can online sales be prohibited?

An absolute ban can create competition risk; quality and channel restrictions should be proportionate.

May the supplier fix resale prices?

Fixed or minimum resale-price pressure is risky; recommended or maximum prices must not become compulsory.

Must inventory be repurchased at termination?

There is no universal automatic rule; the contract, investment, product life and equity matter.

May an agent sign customer contracts?

Only within express authority, which should be clearly documented.

Can the agent waive goodwill indemnity in advance?

Advance waivers adverse to the agent are restricted and require careful review.

Does foreign governing law exclude Turkish competition law?

Mandatory Turkish competition rules may apply to conduct affecting the Turkish market.

Conclusion

A Türkiye distribution model starts with status and authority, not merely sales targets. Aligning actual function, competition limits, customer data and exit transition makes growth and termination more predictable.

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Legal information notice

This article provides general information only. It is not a legal opinion for a particular company, transaction, tax position, licence application or dispute. Applicable sector, tax, employment and regulatory rules require a fact-specific review.

Bibliography

• Türk Ticaret Kanunu No 6102 — https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf
• Türk Borçlar Kanunu No 6098 — https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6098.pdf
• Rekabetin Korunması Hakkında Kanun No 4054 — https://www.mevzuat.gov.tr/mevzuatmetin/1.5.4054.pdf
• Goodwill Indemnity in Exclusive Distribution Agreements — https://doi.org/10.26650/annales.2025.76.0010
• Kişisel Verilerin Korunması Kanunu No 6698 — https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6698.pdf
• Sınai Mülkiyet Kanunu No 6769 — https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6769.pdf
• Milletlerarası Özel Hukuk ve Usul Hukuku Hakkında Kanun No 5718 — https://www.mevzuat.gov.tr/mevzuatmetin/1.5.5718.pdf
• Electronic Signatures and Commercial Contracts — https://doi.org/10.14296/deeslr.v17i0.5227

Footnotes

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1. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

2. Türk Borçlar Kanunu No 6098 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6098.pdf accessed 1 September 2026. Contract, representation, services, liability, termination and compensation provisions.↩︎

3. Rekabetin Korunması Hakkında Kanun No 4054 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.4054.pdf accessed 1 September 2026. Restrictive agreements, dominance, mergers and acquisitions, and sanctions.↩︎

4. Goodwill Indemnity in Exclusive Distribution Agreements https://doi.org/10.26650/annales.2025.76.0010 accessed 1 September 2026. A recent doctrinal analysis of goodwill indemnity claims in agency and exclusive-distribution relationships.↩︎

5. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

6. Türk Borçlar Kanunu No 6098 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6098.pdf accessed 1 September 2026. Contract, representation, services, liability, termination and compensation provisions.↩︎

7. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

8. Türk Borçlar Kanunu No 6098 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6098.pdf accessed 1 September 2026. Contract, representation, services, liability, termination and compensation provisions.↩︎

9. Rekabetin Korunması Hakkında Kanun No 4054 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.4054.pdf accessed 1 September 2026. Restrictive agreements, dominance, mergers and acquisitions, and sanctions.↩︎

10. Goodwill Indemnity in Exclusive Distribution Agreements https://doi.org/10.26650/annales.2025.76.0010 accessed 1 September 2026. A recent doctrinal analysis of goodwill indemnity claims in agency and exclusive-distribution relationships.↩︎

11. Rekabetin Korunması Hakkında Kanun No 4054 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.4054.pdf accessed 1 September 2026. Restrictive agreements, dominance, mergers and acquisitions, and sanctions.↩︎

12. Goodwill Indemnity in Exclusive Distribution Agreements https://doi.org/10.26650/annales.2025.76.0010 accessed 1 September 2026. A recent doctrinal analysis of goodwill indemnity claims in agency and exclusive-distribution relationships.↩︎

13. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

14. Goodwill Indemnity in Exclusive Distribution Agreements https://doi.org/10.26650/annales.2025.76.0010 accessed 1 September 2026. A recent doctrinal analysis of goodwill indemnity claims in agency and exclusive-distribution relationships.↩︎

15. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

16. Goodwill Indemnity in Exclusive Distribution Agreements https://doi.org/10.26650/annales.2025.76.0010 accessed 1 September 2026. A recent doctrinal analysis of goodwill indemnity claims in agency and exclusive-distribution relationships.↩︎

17. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

18. Türk Borçlar Kanunu No 6098 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6098.pdf accessed 1 September 2026. Contract, representation, services, liability, termination and compensation provisions.↩︎

19. Türk Ticaret Kanunu No 6102 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6102.pdf accessed 1 September 2026. Company, branch, agency, representation, commercial books, management and liability provisions.↩︎

20. Türk Borçlar Kanunu No 6098 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6098.pdf accessed 1 September 2026. Contract, representation, services, liability, termination and compensation provisions.↩︎

21. Kişisel Verilerin Korunması Kanunu No 6698 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6698.pdf accessed 1 September 2026. Controller/processor roles, processing conditions, transfers, security and registry obligations.↩︎

22. Sınai Mülkiyet Kanunu No 6769 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6769.pdf accessed 1 September 2026. The framework for trademarks, patents, designs, licensing and infringement.↩︎

23. Kişisel Verilerin Korunması Kanunu No 6698 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6698.pdf accessed 1 September 2026. Controller/processor roles, processing conditions, transfers, security and registry obligations.↩︎

24. Sınai Mülkiyet Kanunu No 6769 https://www.mevzuat.gov.tr/mevzuatmetin/1.5.6769.pdf accessed 1 September 2026. The framework for trademarks, patents, designs, licensing and infringement.↩︎