Intermediaries who are independent, but agree to cooperate have likely formed a(n) distribution system.

Intermediaries who are independent but agree to cooperate have likely formed a contractual distribution system. This type of system allows independent entities to work together under a formal agreement to achieve mutual benefits, often found in various industries.

Contractual distribution systems include franchises, wholesaler-sponsored voluntary chains, or retail cooperatives. In a franchise, for example, the franchisor grants the franchisee the right to operate a business under its brand, while the franchisee pays a fee and agrees to follow certain operational guidelines. In this cooperation, each independent party maintains its own individual identity and autonomy but collaborates for shared goals such as increased marketing reach, reduced costs, or improved supply chain efficiencies.

This system is advantageous because it allows independent distributors to leverage shared resources, knowledge, and capabilities, thus enhancing competitiveness in the marketplace while preserving their autonomy.