Concept in Definition ABC

In a franchise system, a "dealer" is the person in charge of selling products or services on behalf of a company to obtain financial benefits in return.

The franchise system is often implemented by large companies or companies. size, who seek to extend their brand through the sale of franchises to third parties, for which the company mother will give its products to concession so that the "dealer" or owner of the franchise is responsible for reselling them. Is strategy It is useful to expand the scope of a brand or product locally, regionally and globally, saving costs. A typical example is that of the fast food chain McDonald's.
Franchise systems vary in terms of modality, features and agreement that is given between the parties, but usually include a high-level company and a dealer who is responsible for distributing the products to the consumer final. In some cases, the dealer buys the franchise at a certain cost, obtaining all of the profits produced by it. In others, the franchise is a concession and the dealer gets a percentage of the profits and profits.

There are dealers for all kinds of products. Some typical scenarios are, for example, the seller of antiques or works of art, which receives them for concession from their owners and focuses its efforts on resell them in antique stores, art galleries or specialty businesses that have an interest in the same. Another typical case is the car dealer. In this case, automobile manufacturers of different brands deliver vehicles to dealer businesses that promote and sell them to the general public throughout the world. country or the world. There are also broker-dealers, those who are in charge of selling shares of a company or company to shareholders or investors interested in its growth. This often occurs when companies are in their early stages and need investors to grow but already have progress to attract stakeholders.

The term "dealer" is also used in the jargon to refer to those individuals who resell illegal drugs and narcotics to the public.