What is a distributorship?
A distributorship is an arrangement where the manufacturer makes its money on the sale of the actual goods that are distributed rather than for the right to distribute the goods. Thus, a distributor normally doesn't have to pay fees for the right to distribute a manufacturer's products and/or services, unlike a franchise business arrangement. Distributorships fall under distributorship laws, as well as contract and other business laws. Distributorship laws vary from state to state, and they are very complex, which is why you should consult with an attorney before entering into a distributorship agreement.
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