Legal Definitions - distributorship

Definition: A distributorship is a type of franchise where a person or company sells merchandise, usually in a specific area, to individual customers. For example, a car distributorship would be a franchise held by a person or company who sells cars to individual customers in a specific area.

Example: A company that sells cleaning products may offer distributorships to individuals or other companies who want to sell their products in a specific area. The distributor would then be responsible for selling the products to individual customers in that area.

This example illustrates the definition of distributorship because it shows how a person or company can hold a franchise to sell merchandise in a specific area to individual customers.

Dual distributorship: This is a business structure in which one party operates a branch or dealership on the same market level as one or more of its customers. For example, a car manufacturer may operate a dealership in the same area as one of its independent dealers.

This example illustrates the definition of dual distributorship because it shows how one party can operate a branch or dealership on the same market level as one or more of its customers.