Franchising is a business model that provides a specific plan for replicating the original concept. Done through a franchise agreement, each independent operation is identical to the other even when managed by different owners in different geographical locations. This proven approach gives future franchisees a
ready-made game plan to operate a profitable business just about anywhere in the world.
There are 4 unique types of agreements
- Single unit franchise agreement: With a single unit franchise agreement, the franchisor will grant a franchisee a license to operate one unit in a specific location. The franchisor will protect the operator from direct competition with other franchisees within a certain radius or specific postal codes, usually within few miles.
- Multi-unit franchise agreement: A multi-unit franchise agreement allows the franchisee to open a certain number of franchise units within the protected territories or areas they select from available franchise locations. This is a great option for those that have franchise operation experience or already own a single franchise unit and want to rapidly expand their business and income potential.
- Area Representative Agreement: An Area Representative (AR) is someone in the unique position of controlling the development rights for a given area. This territory can be a major metropolitan area, an entire city, or even a whole State. The partner buys the rights to market and helps develop the territory for the business. By assisting with this growth, the AR can benefit financially from the initial fees and on-going monthly fees collected within the area, as well as, the territorial value appreciation as the Brand matures.
- Master Agreement: Under the umbrella of a master franchise territory agreement, the franchisee obtains exclusive rights to develop, own and operate international franchise units within entire geographic regions such as metropolitan areas, counties, states or even foreign countries. The master franchise owner acts as a sub-franchisor and collects royalties for each franchise unit developed under the master franchise agreement while still maintaining all the benefits of the original franchisor. One of the benefits of a master franchise agreement is the ability to offer either single unit or multi-unit franchise licenses for owners that will operate their franchise unit(s) under your master agreement.