A franchise is a license to use the business name and model of an existing concern. Generally, I believe, the product sold in a franchise is owned by the franchisee. So, when local McDonald's owner sells you a hamburger, he does so with meat, bread and condiment from his own inventory.

A dealer, however, is an agent between the seller and the buyer. Although you can buy a vehicle out of existing stock at an auto dealership, I believe that the beginnings of the industry and current practice for many purchases is to order a vehicle through the dealership which is then made and shipped by the manufacturer for delivery.

If you wanted to be technical about it, whether you are doing business with a dealership or a store (a single entity can be both) depends on the terms under which you buy: through special order, or out of existing stock.

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