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Difference Between A License Agreement And A Distribution Agreement

It would, however, include all obligations imposed on a licensee or distributor in the operation of the licensed undertaking or distribution agreement, going beyond obligations relating to the use and protection of trademarks or the training necessary for the operation of the equipment or other products that are marketed. Whether the licensing or distribution agreement is exclusive or not can have profound consequences for the parties. A distributor`s obligations should not be compared to the much greater restrictions that a franchisee wishes to impose on its franchisees. In addition, the distributor does not have to pay any administrative fees to the supplier. The supplier`s profit results from the difference between the price at which he manufactures or pays for the goods and the price at which he can sell the goods to the distributor. . . .