Franchise Spotlight: Distribution
A driver’s license and entrepreneurial mindset can potentially secure you a low cost, home-based business opportunity.
Distributors sit between manufacturers and retailers in the supply chain, buying goods from the former and distributing and selling them to the latter.
Whereas wholesalers typically have a closer relationship with the retail or hospitality sectors, distributors tend to work more closely with manufacturers.
Some businesses – called wholesale distributors – fall into both categories.
Franchise industry trends
Distribution franchisees focus on delivering the core service, collecting and delivering goods within a particular territory, while franchisors handle things like picking and packing, marketing, back-office administration and market research.
A driver’s license is a must, as is an entrepreneurial mindset and willingness to follow a proven model. However, prior experience in similar roles is not generally sought.
A positive outcome is that premises and employees are seldom needed, so start-up costs and overheads are generally low.
Distribution franchises include Caffeine Dream, where franchisees install and restock coffee vending machines comprising eight types of coffee in office buildings, shopping malls, universities and other high footfall locations.
They can buy as many machines as they like, choose their own hours, set their own prices, pay no royalties and keep 100% of the sales.
NuVinAir distributors, which also pay no royalties, distribute airborne treatments that remove contaminants, odor and pollutants from within vehicles by dispelling a dry, hygienic vapor.
The product and the process for which the company owns the patent, is distributed to dealerships, detail shops, car washes, car rental companies and other VIN businesses.
Milagro CBD Oil supplies a product containing a non-psychoactive extract of cannabis, for which there is a rapid industry growth rate, to 12 countries. The company manufactures its CBD oil from organic hemp and also sells home CBD test kits.
Eight potential investment tiers scale up in price with the level of stock, support, and resources on offer.