There is often confusion about difference between a distributor and franchiser. A distributor is generally an broad term, whereas franchiser always mean just one thing i.e. exclusive marketing and supply rights in the given area for particular company.
Here we compare features of both, which will help you understand the differences.
Distributor | Franchiser |
| Distributor is a broad term. A distributor can market and sell drugs of one company or many other companies in wholesale. | Franchiser is always limited to one company. Say limited to one pharma company brand. |
| A franchiser is also a marketer and distributor. | A distributor need not to be the franchiser. |
| There can be other distributors in same area having stock of same company, if company do not grant exclusive rights. | A franchiser always have exclusive rights in particular geographical area pf the given PCD pharma company or any other company |
| A distributor is mostly self-responsible for managing his work. | A franchiser is a distributor and marketer of only one company, that company also could provide training and support to the franchiser. |
| Money required will be more if distributor stock and supply a large number of brands. | Franchiser need to spend on the inventory and management of one company only. |
| Distributor could cater to a wider demand base. | Franchiser usually supply a brand which already have demand in the market in its segment. |
| Products with Distributor compete with each other and products supplied by other distributors | If franchiser has a good product with already existing demand in its niche, its easier to manage the competition. |
We hope above points have helped you in developing understanding regarding the difference between distributor and franchiser.
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