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VERTICAL RESTRAINTS AND LABOR MARKETS IN FRANCHISED INDUSTRIES Brian Callacia, Sergio Pintob,c, Marshall Steinbaumd and Matt Walshe aOpen Markets Institute, USA University of Maryland at College Park,
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01
Identify the type of vertical restraint you need.
02
Gather all required information about the product and the distribution channels.
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Outline the terms and conditions for the vertical restraint.
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Specify the territories or markets affected by the vertical restraint.
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Distribute the filled-out vertical restraint documents to relevant parties.

Who needs vertical restraints and?

01
Manufacturers looking to control distribution.
02
Brand owners aiming to maintain pricing levels.
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Wholesalers and distributors who enter exclusive agreements.
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Retailers that operate under specific terms from suppliers.
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Vertical restraints are agreements between businesses at different stages of the distribution process, such as manufacturers and retailers, that restrict the conditions under which products can be sold.
Typically, manufacturers, suppliers, or wholesalers who engage in vertical agreements or practices that may affect competition are required to file vertical restraints.
Filling out vertical restraints generally involves providing detailed information about the agreement, including the parties involved, the nature of the restrictions, and the rationale for the agreement.
The purpose of vertical restraints is to promote inter-brand competition, control distribution channels, and maintain brand image by ensuring that retailers adhere to certain pricing or promotional strategies.
Information reported on vertical restraints typically includes the parties' identities, the specific terms of the agreement, its impact on market competition, and any measures taken to prevent anti-competitive practices.
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