Student Questions - The difference between franchising & dealership from Anonymous: MarketingProfs Question 4793

Topic: Student Questions

The Difference Between Franchising & Dealership

Posted by Anonymous on 12/28/2004 at 4:32 PM ET 250 Points

what is the difference between franchising & dealership, franchising & retailing

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Posted by Carl Crawford on 12/28/2004 at 8:22 PM Member

hi semeer,

try www.google.com .The info is there, i found it. But if you cant find it then go to www.googleguide.com and take the beginner tutorial.
Posted by Peter (henna gaijin) on 12/29/2004 at 12:01 AM Accepted

Definitions (from die.net):
Franchise - an authorization to sell a company's goods or services in a particular place
Dealership - same definition
Retailing - the activities involved in selling commodities directly to consumers

So, franchising and dealership by this definition are the same. In the United States, they are used slightly differently, so perhaps this definition isn't exactly correct. Dealerships usually refer to someone selling equipment (like a car dealer or a tractor dealer), where most people think of food outlets when they think of franchises.

A franchise or a dealership is also a retailer, but a retailer does not have to be a franchise or dealership. Retailer is a more general term, so could apply to those where the manufacturing company sells the products themselves, where they sell through a franchise or dealership, or in general distribution situations.