A product distribution franchise model is similar to a supplier-dealer relationship, however, the franchisee is required to observe a few guidelines e.g. agreeing to sell only the franchisor’s brand exclusively.   

For example, an outlet may agree to sell only certain products in its store at the exclusion of some other products. Typically, the franchisee merely sells the franchisor’s products. However, this type of franchise will also include some form of integration of the business activities. The franchisee is allowed to be much more independent than if he or she was running a business format franchise.   

Some well-known product distribution franchises are Coca-Cola, the Ford Motor Company, Exxon, and Osim.    Product distribution franchises deal mainly with large products such as automobiles and auto repair parts, vending machines, computers and some inventory for convenience stores.