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A business owner can enter market in various ways - directly through his/her sales force or indirectly through agents, distributors and franchise.

Franchise is the right to market or sell goods or services under the trademarked name, or patented process, of an established business. A franchise agreement is a legal contract between the business, called the franchisor, and the purchaser of the franchise, called the franchisee. The franchisee purchases the right to market and sell the items under the trademarked name of the franchisor. A franchise agreement is a legally binding contract between the franchisor and franchisee that details the rights, responsibilities, obligations and compensation of both parties in relation to the purchase and operation of the franchise.

Distributor is a company that buys and sells products from another company. The distributor usually warehouses these products at a facility it owns or leases. It then sells the products to retailers and/or directly to consumers. A distribution agreement is a legally binding contact between the owner of the products and the distributor. This agreement specifies the rights, costs and responsibilities of the parties in relation to the distribution of the products. The distributor purchases the products from the company that makes the products, but does not have any ownership in the company itself.