Companies that participate in the competitive market are making efforts to maintain sustainable competitive advantage by improving business efficiency. For top managements, efficiency can be said to be the dominant idea and management guideline in the business field. In the side of business academy, it is common that efficiency is conceptualized as productivity of output versus input. Transaction cost analysis is a typical theory that emphasizes efficiency in the field of marketing channel. The basic and core idea of TCA is that an organization can minimize transaction costs with a choice of efficient governance structure. There are limitations when it comes to directly measuring transaction costs. In this study, data envelopment analysis (DEA) was conducted as a complementary methodology that can directlymeasure efficiency inmanufacturing and distribution. The subjects of this study are cosmetic-related companies publicly listed on the web-site of franchise in the Fair Trade Commission. The input and output variables of DEA were extracted from the information disclosure document registered on the web-site of franchise in the Fair Trade Commission. The author measured CCR model and BCC model of DEA, the direction for inefficient companies to reach the efficiency frontier with the slack value. As results, in both the CCR model and the BCC model, through the upward adjustment of the number of distribution shops as an input variable and operating income as an output variable, it was found that inefficient companies could approach the efficiency of the reference group. Particularly, in terms of distribution coverage, an implication was drawn that the efficiency of each individual company could be improved by from the type of exclusive distribution type preferred by domestic companies to an intensive distribution type. Also, it was shown that there is a need for efficient internal management that can alleviate deterioration in profitability due to rapid changes in the business environment.