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 carried out by large companies or companies, which seek to extend their brand through the sale of franchises to third parties, for which the mother company will give its products to concession for the "dealer" or owner of the franchise is responsible for reselling them. This strategy is useful to expand the reach 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, characteristics and agreement between the parties, but usually include a high-level company and a dealer who is responsible for distributing the products to the final consumer. 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, who receives them for concession from their owners and dedicates their efforts to reselling them in antique stores, art galleries or specialized businesses that have an interest in them. themselves. 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 in all parts of the 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 happens when companies are in their early stages and need investors to grow but already have progress that allows them to attract stakeholders.
The term "dealer" is also used in jargon to refer to those individuals who resell illegal drugs and narcotics to the public.
