Distribution business model is a business model that facilitates the distribution of goods and services from the producers/manufacturers to the end users/consumers. It is a business model that ensures that products and services reach target customers in the most direct and cost-efficient manner. If it is services, distribution is predominantly concerned with access.
The distribution model is a concept that is relatively simple and straightforward. In practice, distribution business model may involve a diverse range of activities and disciplines including: detailed logistics, transportation, warehousing, storage, inventory management as well as channel management including selection of channel members and rewarding distributors.
You can actually own a distribution model business in the United States on a platter of gold by buying a franchise of a distribution company and here are some of the best distribution franchises you can buy in the United States of America.
14 Best Distribution Franchise Opportunities and Their Cost
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Coffee News is a fun free weekly publication distributed in restaurants, coffee shops, hotels and other waiting areas. In addition to ads for local businesses, it contains news stories, jokes, trivia and horoscopes. Coffee News was founded in 1988 by Jean Daum in Winnipeg, Manitoba but in 2008 the company was bought by it’s first U.S. franchisee Bill Buckley and headquarters is now based in Bangor, Maine.
Coffee News has her head office at One Cumberland Pl., #102 Bangor, ME 04401, USA and they provide franchise opportunities throughout the world and as of 2018, the company has more than 700 franchisees worldwide.
- Initial Investment: $10,750 – $11,750
- Ongoing Initial Franchise Fee: $9,500
- Ongoing Royalty Fee: $40 – $80/wk.
KHLOÉNOVA House is the first Haute Couture Designer Brand with Franchise & Distribution Network opportunity for Fashion & Organic Cosmetics. The Bulgarian British based couturier designer started with sophisticated collection at London Fashion Week in 2014, right now the brand has over 100 lines from Couture Bridal & Bridesmaids & Evening Wear,
Ready to wear, Shoes & Bags, Lingerie’s, 365 Beach Wear, Accessories for Women, Men, Kids to Natural Skin & Hair Cosmetic Care, CBD Range ( including Hands Sanitizer Antibacterial products) & Perfumes Collections and Supplements & Multivitamins Health Care Lines, which the brand sells through B2B & B2C.
KHLOÉNOVA Designer Gowns have been worn on many Global runways, Red Carpets, Awards Ceremonies, Worldwide Miss Beauty Reagents, Celebrities and featured in prestige’s Magazines like Vogue UK, Glamour UK, Tatler and many others.
KHLOÉNOVA is now expanding Regionally & Internationally and offers Franchise for Multi National Territory’s to join the Global Network of the Designer Couture House. Full training, support, mentorship will be provided within very minimum investment.
- Initial investments: none
- Payback period: 2 months
- Average turnover per month: from $10,000
- Royalties: 10 percent Ongoing support or on Wholesale Basis
- Franchise fees: from $0,000 to $8,000
The company manufactures and distributes PunctureSafe which is a “permanent” puncture prevention treatment and tyre life extender/conditioner. It is installed in minutes through the tyre valve with very little air loss and without removing the wheels. It is “applied before the puncture occurs” and permanently seals punctures “as they happen. It is an ECO Friendly water based product that is 100 percent non-toxic and 95 percent organic.
Puncturesafe is the product of the future and that is why over 120 persons in the UK have signed up for a regional franchise during the last 4 years and who in turn have sold to tens of thousands of businesses and individuals. Their UK business model has been extremely successful due to the nature and quality of the product, plus the market for PunctureSafe is everywhere.
Ace Hardware Corporation
Founded in 1924 as “Ace Stores”, the company changed its name to “Ace Hardware Corporation” in 1931. It grew dramatically following World War II, more than tripling its sales between the late 1940s and 1959. After the retirement of longtime president and founder Richard Hesse in 1973, Ace was sold to its retailers, becoming a retailer-owned cooperative.
It first reached $1 billion in wholesale sales in 1985 and $5 billion in 2015. As of 2016, it has over 4,800 locations in 60 countries. Ace operates 17 distribution centers in the United States, and additional distribution facilities in China, Panama, and United Arab Emirates.
- Initial investments: $31,557 – $149,398
- Net-worth Requirement: $400,000
- Liquid Cash Requirement: $250,000
- Ongoing Initial Franchise Fee: $5,000
Merle Norman Cosmetics, Inc.
Merle Norman Cosmetics, Inc. was founded in 1931 and is based in Los Angeles, California. The company engages in the research, development, manufacture, and distribution of skin care and color cosmetic products for women. Merle Norman also provides franchise options. The company sells products through its cosmetic studios in the United States, Canada, and Mexico.
- Initial investments: $30,685 – $188,270
- Net-worth Requirement: $100,000 – $250,000
- Liquid Cash Requirement: $25,000 – $100,000
Our Town America
Our Town America promotes direct mailing, customized distribution, personalized Welcome Packages and Gift Certificates with targeted tracking for direct-response customer feedback. The company was founded in 1972 in Clearwater, Florida. They also provide franchise opportunities. As of 2018, the company operates 65 franchises in the United States.
- Initial Investment: $63,300 – $86,250
- Net-worth Requirement: $160,000
- Liquid Cash Requirement: $70,000
- Ongoing Initial Franchise Fee: $47,500
- Ongoing Royalty Fee: 5 percent
- Ad Royalty Fee: to 1 percent
Golden Krust Caribbean Bakery & Grill
Golden Krust Caribbean Bakery & Grill is a Caribbean cuisine fast food chain, and manufacturer and distributor of Caribbean food products. The company was founded in 1989. The parent company is owned by immigrants from Jamaica, and the stores are franchised.
There are over 100 Golden Krust restaurant franchises operating in ten U.S. states: New York, New Jersey, Connecticut, Pennsylvania, Georgia, Florida, Maryland, North Carolina, Massachusetts, and Texas. There are also restaurants in Canada. The company also distributes food products to retailers and is considered the foremost Jamaican business in the U.S.
- Initial investments: $225,900 – $687,000
- Net-worth Requirement: $500,000
- Liquid Cash Requirement: $200,000
- Ongoing Initial Franchise Fee: $40,000
- Ongoing Royalty Fee: 3 percent
- Ad Royalty Fee: 2.5 percent
Ben & Jerry’s
Ben & Jerry’s is an American company that manufactures ice cream, frozen yogurt, and sorbet. It was founded in 1978 in Burlington, Vermont. Today it operates globally as a fully owned subsidiary of Unilever. Its present-day headquarters is in South Burlington, Vermont, with its main factory in Waterbury, Vermont.
The company also operates and franchises scoop shops; provides ice cream catering services and cakes; and provides gift items. It distributes its products through supermarkets, grocery stores, convenience stores, franchise scoop shops, restaurants, and other venues in the United States and internationally.
- Initial investments: $156,385 – $486,000
- Net-worth Requirement: $350,000
- Liquid Cash Requirement: $100,000
- Ongoing Initial Franchise Fee: $16,000 – $37,000
- Ongoing Royalty Fee: 3 percent
- Ad Royalty Fee 4 percent
Mac Tools is an American company that manufactures and markets professional tools and related equipment. It is headquartered in Westerville, Ohio, United States. The Mac Tools line consists of over 8,000 professional tools including screwdrivers, ratchets, wrenches, and assorted air tools. Mac Tools also produces its own line of tool storage and carts at its manufacturing plant located in Georgetown, Ohio.
Mac Tools manufactured tools are produced in various Stanley Black & Decker facilities across the world. Mac Tools USA hardline tools are manufactured in their partner Proto Dallas plant. Their primary distribution center is located in Hilliard, Ohio, USA. Mac Tools business model is a franchise system with roughly 1500 distributors across North America.
- Initial investments: $106,026 – $259,255
- Net-worth Requirement: $40,000
- Liquid Cash Requirement: $8,000 – $22,000
- Ongoing Initial Franchise Fee: $5,950 – $8,000
Carvel distributes its line of ice cream, cakes, pies and other treats in its own locations and in stadiums, club stores and supermarkets. In 1934 Tom Carvel opened his first ice cream shop in Hartsdale, New York. The company has operated retail stores selling ice cream and other frozen desserts and has granted franchises for these stores since 1947. As of 2018, Carvel operates more than 400 franchise and foodservice locations in more than 20 states and over 10 countries.
- Initial Investment: $247,474 – $388,724
- Net-worth Requirement: $350,000
- Liquid Cash Requirement: $140,000
- Ongoing Initial Franchise Fee: $30,000
- Ongoing Royalty Fee: $2.38/gallon
- Ad Royalty Fee: $2.08/gallon
Snap-on Incorporated is a designer, manufacturer and marketer of high-end tools and equipment for professional use in the transportation industry including the automotive, heavy duty, equipment, marine, aviation, and railroad industries.
Snap-on also distributes lower-end tools under the brand name Blue-Point. Snap-on, Inc has more than 65,000+ SKUs in their product line, operates in more than 130 countries and employs approximately 12,600 people worldwide. Snap-on also has a franchise network of more than 4,200 franchisees.
Snap-on tools are sold only by dealers and not in retail stores. Snap-on has always maintained the philosophy that the customer’s time was too valuable to spend going shopping for tools. The franchisees visit their customers in their place of work once weekly, in a van loaded with items for purchase.
- Initial investments: $171,385 – $359,767
- Net-worth Requirement: $35,677 – $53,366
- Liquid Cash Requirement: $35,677 – $53,366
- Ongoing Initial Franchise Fee: $8,000 – $16,000
- Ongoing Royalty Fee: $120/mo.
A franchise of PERONI stand is a way to get into the world of good taste, beauty, health, and pleasure! Peroni is a Russian company which produces products of the highest quality. Peroni stand is not only beautiful and attractive, it is also an opportunity to gain maximum profit from the unused space in your shop and a possibility to open or expand a distribution of new popular natural eco-products.
- Starting investments from: $1,150
PITAYA® moves away from traditional Thai dining by exporting the urban atmosphere that can be found in Asia and by creating the only Thai-influenced French fast food network. The adventure began in 2010 with the opening of the first location in the middle of the city of Bordeaux. The idea of developing a trendy concept adapted to new contemporary consumption methods came to life and developed quickly to several other locations in Bordeaux.
Today, PITAYA® had grown and has developed franchises all over France and abroad. Awarded as the “People’s Choice Franchise 2016”, the adventure took on a whole new dimension: PITAYA® ended up spreading the “freshness” of its food all over France, and beyond, for dine-in, takeaway and delivery.
With the increase in dining on the go and the acceleration of life in city environments, PITAYA® has stuck to the standards of fast food: optimized service, sales for dine-in, takeaway or delivery, facilitating the lunch break and “express” dining for its customers.
- Initial investments: $233,300
Crimean Rose manufactures their products from natural raw materials grown in Crimea. The company has expertise in the development and creation of cosmetic products since 1930.
Today, under the brand name Crimean Rose, they operate 2 branded stores. Currently, the natural cosmetics market is experiencing an unprecedented rise. One of the important advantages of the Crimean Rose Franchise is the use of natural ingredients and essential oils.
- Starting investments: from $9,500
- Trading equipment – $4,070;
- Initial purchase of goods – $4,070;
- Rent + deposit – $1,360