Definition: Individuals or businesses that purchase the right to sell ABC
Corp.'s products but not the right to use ABC's trade name
One of the most common types of business opportunity ventures, a
distributor or dealer is an independent agent who's entered into an
agreement to offer and sell the product of another company but
isn't entitled to use the manufacturer's name as part of its
business name. Depending on the agreement, the distributor may be
limited to selling only that company's goods or it may have the
freedom to market several different product lines or services from
various firms.
Here's an example: An authorized dealer of Minolta products
might have a Minolta sign in his window, but he can't call his
business Minolta. Often, the words "dealers" and "distributors" are
used interchangeably, but there is a difference: A distributor may
sell to several dealers, while a dealer usually sells directly to
retailers or consumers.