Sole distributorship is where the supplier appoints a distributor as their only (or 'sole') distributor within a specified territory, but unlike the “exclusive distribution” model the supplier is still able to market the applicable goods to the end users as they wish.

What is exclusive and sole distributor?

Exclusive rights prevent the supplier actively seeking sale in the distributors' territory and from appointing other distributors in the territory. Sole rights prevent the supplier from appointing another distributor in the territory, but will not prevent the supplier seeking sales there.

What is sole distributor agreement?

A sole distributor agreement is one in which the manufacturer sells exclusively to one distributor. Sole distributor agreements are used in many industries, including media and entertainment, medical supplies, electronics and clothing.