Working with a subcontractor in the cosmetics sector? A clear subcontracting agreement is a must

Partnering with a subcontractor in the cosmetics industry? Then a clear subcontracting contract isn’t just a luxury, it’s a necessity. It outlines responsibilities, protects your brand, your formulas, and your reputation.

At Anybrand Cosmetic, we assist brands daily in drafting legally sound and practically workable contracts. In this blog, you’ll learn what such an agreement entails, why it’s so important, and how we make a difference.

The Added Value of Outsourcing to a Formulation Laboratory

Entrusting your production to a specialized laboratory doesn’t mean giving up control, quite the opposite. You gain expertise, time, and peace of mind. A subcontractor helps you achieve the ideal texture, scent, and performance of a product without the need for major investments in infrastructure or staff.

At Anybrand Cosmetic, we go beyond production. We think alongside your brand, advise on formulations, and ensure each product complies with the strictest organic standards (such as Ecogarantie). This way, you can fully focus on brand development and marketing strategy.

What Should Be Included in the Contract?

A strong subcontracting contract clearly outlines how the collaboration will work. It specifies who supplies raw materials and packaging, who is responsible for quality control, and how changes to the formula are handled.

Think, for example, of inventory management, the handling of non-conforming products, and delivery timelines and conditions. Such arrangements are essential to avoid misunderstandings, especially as your brand grows.

Equally important is a description of the regulatory framework under which production occurs. Who decides on formulation changes? How are those changes communicated? And what happens if a product needs to be recalled?

Quality as a Cornerstone

At Anybrand Cosmetic, quality is paramount, not only in our products but also in our processes. That’s why every contract includes clear provisions on how quality control is carried out, which standards apply, and the criteria for acceptance or rejection.

We also provide a framework for audits. These can be conducted periodically by you as the client or by an external body. The contract describes how these audits are announced, how they are conducted, and what their consequences are.

The more transparent this part of the contract is, the smoother the collaboration will be.

Deliveries, Orders, and Pricing

Following the technical sections comes the commercial chapter. When are orders placed? How far in advance? What happens in case of delays?

We discuss delivery terms together (home delivery or ex-works), payment conditions (deposit, balance, flat fee arrangement), and how price revisions can be handled, e.g., due to rising raw material costs. Final product prices are added as an annex to the contract.

Lastly, we include the insurances taken out under this section. Transparency here, too, is key to a strong partnership.

Contract Duration

A subcontracting contract for cosmetic formulation is usually signed for a period of three to five years. This duration can, of course, be modified by mutual agreement.

More important than the duration itself are the renewal and termination conditions. What happens if either party wishes to end the collaboration? What is the notice period, and what terms apply?

We ensure these clauses are legally correct and balanced.

Confidentiality and Intellectual Property

Last but not least: the chapter on intellectual property and confidentiality. During a collaboration, unique formulas may be developed or proprietary processes shared. It’s crucial that both parties are protected, ensuring this information isn’t disclosed or reused by third parties.

The contract also stipulates what happens in the event of a merger, acquisition, or change of ownership. Finally, it defines the applicable law and jurisdiction in the event of disputes.

A Solid Foundation for a Successful Partnership

A subcontracting contract is far more than a formality. It’s the legal and operational backbone of your cosmetics brand. The more detailed and transparent the agreement, the smoother and more efficient the collaboration.

At Anybrand Cosmetic, we’re ready to guide you—from the initial briefing to the final product delivery—under a clear and fair contract.

💬 Curious how we do it? Get in touch and discover what we can do for your brand.