Glossary

Most favoured nation

A clause says the supplier will not give another customer a better price or term without offering the same to this client. It is a pricing promise, not exclusivity. Draft the comparison: same scope, same volume, same period. An open-ended MFN across every client and every product is hard to police and easy to breach.

Last updated 28 October 2026

Agencies meet MFN language in renewals and in influencer papers: “you will not charge anyone else less for the same package.” That is not an exclusivity clause. Exclusivity stops you working for a named rival. MFN lets you work for anyone, but not on a better price. A right of first refusal is a third device.

We only draft an MFN when the comparison is tight enough to audit. Lex will ask: same deliverable, same volume, same territory, same period. A “most favoured” promise over every future product is how a studio ends up rewriting last year’s rate card. If you do not want the clause, strike it; do not leave it vague.

Is an MFN the same as exclusivity?

No. Exclusivity restricts who you may work for. MFN restricts the terms you may offer others. You can have both, but stack them only if you mean both. A client who wants you off a rival’s roster needs exclusivity, not MFN.

How narrow should an MFN be?

Same services, same volume band, same territory, during the term. Exclude introductory rates, barter, group companies and work you do at cost for a charity. A 30-day window to match a genuine third-party price is easier to live with than a perpetual audit of every quote.

Does an MFN survive termination?

It should not, unless you are still delivering a residual package. An MFN that follows you for years after the retainer ends is a restraint by another name and will be read that way. End it with the term, or with the last open statement of work.

How do we prove a breach?

The clause should say what the client may ask to see — a redacted rate, not every other contract. You should not have to disclose another client’s confidential paper. A certificate from a director is the usual middle path. Do not agree to an open book over your whole studio.

A worked example

A photographer’s retainer includes an MFN on the day rate for a full-day studio shoot in London, same usage, during the 12-month term. Two months later they quote another brand £200 less for a half-day. That is a different package, so the MFN does not bite. If they had quoted the same full-day package cheaper, they would have had to offer the first client the same rate for the rest of the term.

How it shows up in a contract

Sample wording · our own drafting

During the Term, the Supplier will not offer a third party a lower fee for the same Services, in the same volume band and territory, without first offering that fee to the Client. Introductory rates, barter and work for a charity are excluded. This clause ends when the Term ends. It is not an exclusivity obligation.

In Plain English

While this deal runs, we will not sell the same package, at the same size, in the same place, cheaper to someone else without offering you that price. Launch discounts, swaps and charity jobs do not count. This is not exclusivity. It dies when the term dies.

Common mistakes

  • Signing an MFN that compares every future product to this one job.
  • Confusing MFN with exclusivity and turning down other clients you were still allowed to take.
  • Agreeing to show every other contract as “proof”.
  • Letting an MFN run for years after the retainer ends.

Frequently asked questions

What is a most favoured nation clause?

A promise that the supplier will not give another customer a better price or term without offering the same to this client. It is not exclusivity.

Is an MFN the same as exclusivity?

No. Exclusivity stops you working for a named rival. MFN lets you work for anyone, but not on a better price. See /glossary/exclusivity-clause.

How narrow should an MFN be?

Same services, same volume, same territory, during the term. Exclude intros, barter and charity. Give a short window to match.

Does an MFN survive termination?

It should not, unless residual work is still being delivered. A post-term MFN reads like a restraint.

Related

The legal wording governsLast reviewed 28 October 2026Pending lawyer review