difference between franchise and dealershipwhat is the difference between franchise account manager and dealer account manager  

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wannam's profile pic

wannam | High School Teacher | (Level 3) Educator

Posted on

A fast food restaurant is probably the most common type of franchise but not necessarily the only one.  Nail care franchises are also a good example.  Nail care offered at one location will be similar if not the same to what is offered at another.  The franchise manager will likely be able to decide which services they want to offer or which sales they want to participate in, but they will not have as much freedom as a dealership or an independent business. 

Another big difference between the two business models can be seen in advertising.  For instance, you don't often see a commercial for a particular Wendy's, rather you see a commercial for all Wendy's in general.  On the other hand, a car dealership makes their own commercials and advertisements.  A sale at one Ford location is not likely to be the same at an a different Ford location.  You will see commercials for the product a dealership sells, but the specifics are often left up to each individual dealership.

litteacher8's profile pic

litteacher8 | High School Teacher | (Level 3) Distinguished Educator

Posted on

This is a good question!  A franchise is when you buy a business from the company.  For example, a McDonald's-type fast food joint.  The company provides you with everything, and you have to do things according to the company's direction.  A dealership, on the other hand, is your own business but you have an agreement to sell a particular product, such as a car.

pacorz's profile pic

pacorz | High School Teacher | (Level 3) Educator

Posted on

A franchise is an enterprise where the entire business model is set up for you; the franchise manager has very little say in how things are done. For instance, a franchise, though privately owned, is automatically included in chain-wide changes of merchandise, chain-wide sales and promotions, and chain-wide management adjustments.

A dealership is an agreement to sell a specific product or product line, but most of the decisions on how to go about that are up to the dealership manager. A dealership can hold a sale, change its profit margin, do its own advertising, or adjust its offerings, where a franchise usually can't.

As a result, the manager of a franchise is enforcing decisions that are made by the chain, whereas the manager of a dealership has more latitude and can make more decisions directly.

Here is a link to a good article that explains the differences between the two.

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