Licensed Dealership:
Retailers may find the business model of a licensed dealership as a mix of franchise and independent retailer. The licensee has the right (sometimes this is exclusive) to sell a brand of products. Unlike a franchise, the dealer can sell a variety of brands and there generally no fees to the licensor. Dealerships may or may not be identified as an authorized seller or by the company's trademark.
Advantages:
There may be some branding or product name recognition by the customer. The dealership relation is much more flexible than that of a franchise. This may be a good business model for part-time retailers or those just starting in retail.Disadvantages:
Because of the ease and flexibility of getting started, there can be a lot of competition in a particular area for a certain type of customer. Like the independent retailer, every business decision rests on the owner(s). There is also great deal of risk in this business model.Support:
Dealerships generally do not receive help in getting their business set up.
