EDITORIAL

Dealer vs Franchise

The real difference — in plain English.

A franchise is a legal contract. You pay an upfront fee, you pay an ongoing royalty (usually 5–10% of gross revenue), you operate under the franchisor's brand, you follow their rulebook, and you get a protected territory.

A dealer program is a commercial relationship with a manufacturer. They train you on their product, they sell it to you wholesale, they often help with marketing, and you build your own brand. No royalty. No franchise fee in most cases. You're a customer, not a licensee.

When a franchise makes sense

You want a complete playbook, you're willing to give up brand control, and the franchise actually has a strong locator and lead pipeline.

When a dealer program makes sense

You want to build equity in your own name, you don't want a royalty draining your margins, and you have (or can develop) the operator skills to run a small business.

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