A single unit franchise is an agreement where the franchisor grants a franchisee the right to open and operate one franchise location. This is the most common and simple type of franchise relationship. A multi-unit franchise is an agreement where the franchisor grants a franchisee the right to open and operate more than one franchise location. There are primarily two types of multi-unit franchise agreements: (1) area development agreements; and (2) area representative agreements (also known as master franchise agreements). Under an area development agreement, the franchisor grants a franchisee the right to open a certain number of franchise units in a specified territory, over a specific amount of time. Under an area representative agreement, the franchisee not only has the right to open and operate franchise units itself within a specified territory, but also has the right to sell franchises to other people within that territory. An area representative is essentially a sub-franchisor, and thus takes over many responsibilities and benefits that the franchisor would otherwise have, only for the franchise units within the area representative’s territory.
We represent franchisors in developing and structuring their multi-unit franchise offerings as well as representing large multi-unit and multi-concept franchisees in their negotiations with their franchisors and in acquiring additional units or brands.
