Definition: Buying a single unit franchise 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.
The franchisee typically has a particular territory that is covered by the unit. Usually the franchisor assigns a number of miles to be covered by each unit in operation. If the business is home-based, there may be four or five zip codes included.
With a single unit franchise, the investment costs are less than opening up multiple units. Although most single unit franchises yield a nice income, there is more earnings potential with multi-unit franchises.
