What is a Multi-Unit Franchise?

By definition, a multi-unit franchise means that one franchisee has more than one unit that is operating within the same area. However, it is not as easy as it sounds. The Multi-Unit Franchise will need to sign a document, which is actually an area developer agreement, that clearly states the number of units he or she should or can open given a certain time and a certain location. At the same time, the franchisee will also have an individual Franchise Agreement with the franchisor for every single unit that he will operate.

Nowadays, multi-unit franchise opportunity has become more popular than ever. In this system, the franchisor will apply the same operating procedures to every single location. It is important to note that the franchisor can either be a sole proprietor, a partnership or a corporation.

Plenty of big franchise networks are dominated by a few a multi-unit franchisees. As a result, franchisees achieve a wider and more prominent presence in its target market. A multi-unit franchise can give the franchisee stability because of its vast reach in a specific area. Through a multi-unit franchise, market efforts become efficient as more results are delivered. Those are just a few of the advantages of having more than one franchises in operation. To be a multi-unit franchisee, one will have to prepare to make a big investment. But if done right, the returns are worth the risk.

Moreover, the franchises have, not one, but many branches that each provide good opportunities for success. Similarly, you can say that the consulting franchise does not have rely on one franchise unit when it comes to financial gains.

The franchisor also sees the benefits in a multi-unit franchise. This system lets the franchisor continue to guild it name, reputation and brand. This, in turn, stimulates them into finding and awarding even more franchisees to carry their brand or products to more areas in a target location. In the event that the franchisee has not seen success in one unit through his or her own efforts, the franchisee has the option to take over. The franchisor can, in turn, use it experience and expertise to see the company can manage it better than the franchisee.  No proprietor gained success over night, and neither did he get that success without having taken the risk.

If you, in behalf of your company, have been planning to be a multi-unit franchise, look no further and check this link. Be sure to visit this website at http://money.cnn.com/galleries/2011/smallbusiness/1106/gallery.great_franchise_bets/  for more facts about franchise.