Plain-English Fashion Agreement Summary

What a good one includes

• A clear breakdown of intellectual property ownership, specifically stating who owns the original patterns, tech packs, and final designs.
• A simplified payment schedule outlining deposit terms, net payment terms, and penalties for late fees or canceled production runs.
• Definite quality control standards and defect rate thresholds that dictate when you can reject a batch or demand a refund.
• An explicit timeline summarizing delivery dates, shipping responsibilities, and who bears the cost of delays.
• A plain-language exit clause detailing how either party can cancel the contract and what happens to materials or inventory if they do.
• A summary of any exclusivity clauses that might restrict you from working with competing brands or factories.

Common mistakes to avoid

• Assuming the manufacturer owns the physical patterns or molds just because they produced the physical samples.
• Overlooking vague acceptable defect percentages, which can leave you stuck with unsellable inventory.
• Failing to clarify who pays for shipping, customs duties, and import taxes during the manufacturing transport process.
• Ignoring the lack of a clear delay clause, leaving you liable if the factory misses a seasonal retail window.

Frequently asked questions