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Different Types of Franchise Ownership

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There are many different types of franchise ownership opportunities. You may choose to become a multi-unit franchise owner, an area developer or you may decide to buy an existing franchise. Each ownership opportunity has its own unique responsibilities. The following is a list of the many different ownership opportunities franchising offers.

1. Single Unit Franchise

Single unit franchising is the most likely place a brand new entrepreneur would begin. In this type of franchise, the franchisee would only be responsible for running one unit. However he or she would be extremely involved with all of the daily operations of the business.

2. Buying an Existing Franchise

Many franchise owners decide to sell their franchises after they have opened. There are several reasons why existing franchises are listed for sale. There are pros and cons to buying an existing franchise.

3. Multi-Unit Franchise

Multi-unit franchising creates the opportunity for the franchisee to open more than one unit. In this case, multiple units are usually sold at a reduced rate per unit. In this type of operation, the franchisee partakes less in the day-to-day operations of the unit.

4. Area Developer

Area development is similar to multi-unit franchising. The only difference is that this type of franchising typically involves a greater number of units encompassing a larger territorial area. The area developer is granted the right to open a pre-determined number of outlets in a certain geographic territory.

5. Master Franchise

Master Franchising allows people or corporations to purchase the rights to sub-franchise within a certain territory. A master franchisee helps the overall franchise company by recruiting franchisees to open units within a specific territory.

Quick Definitions:
Single Unit Franchise
Buying an Existing Franchise
Multi-Unit Franchise
Area Developer
Master Franchise

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