Exclusive distributor of product vs franchising

[Alexandoy]

If you have a business with a very popular product you can offer an exclusive distributorship for your particular product instead of giving out a franchise. The franchise is usually expensive so there are no takers. With exclusive distributor of the product, the store is already existing and all it has to do is to sell the product with special attention like a poster.

In our suburban town where native snack food is the biggest industry, one of the most popular stores had put up its own branch also in our town. One competitor opted for the exclusive distributorship in the nearby city. Now the competitor is earning more than the branch of the most popular native snack store. The problem with the branch is it is in the same town and just about 2 kilometers away from the main store.

 

[Mika]

When you are a distributor, you will be paying only for the products that you acquire. You are not paying extra money for the brand name or using the brand logo as a distributor. When you are a franchise, you are using just the brand name and nothing else, yet you will have to give a lot of money for using the name.