Before completing this section, check the questions in Section 6 - Eligibility. There are no special rules or procedures in the USA for forming a distribution agreement, provided that it does not constitute a franchise.â–« Agreement should set out the minimum performance standards required of distributor. I. Methods of Distribution; Scope of Checklist. There are many ways for a supplier to bring its products or services to market. An "accidental franchise" 1 occurs when a distribution agreement is deemed to be a franchise, despite the express intentions and expectations of the parties. "3But, even under Illinois law, the marketing plan need not be required, but merely suggested. The starting point should be the distribution agreement. This distributor agreement template lays out the terms for paying commission on the reselling or distribution on a service or product. A license and distribution agreement is a legal, written contract between two parties who wish to share the rights to a brand, patent, or trademark.