Q&A: What’s the Difference between Multi-Unit, Area Developer, and Master Franchisee?
Like any other industry, the franchise industry has a few terms that you, as a potential franchisee, may not understand. We often get questions about ‘master franchisee’, ‘multi-unit franchise’, and ‘area developer’.
Multi-Unit
A multi-unit agreement is when a franchisee owns and operates multiple franchised units; these units are usually but not always in the same geographic area.
Area Developer
An area developer is a type of multi-unit franchising. An area developer is a franchisee who signs with a franchisor and commits to develop more than one unit in a geographic region within a defined period of time. An area developer is granted a larger ‘exclusive’ territory where he is able to establish single units. Each unit is owned and operated by the area developer.
Master Franchisee
A master franchisee is someone given the right by a franchisor to purchase and sub-franchise (sell new units) within a specific territory. The master franchisee does not own the franchises being developed. Instead, a master franchisee usually receives a share of the franchise fee and/or on-going royalty payments for helping grow the system within a region.
Search Opportunities
Search Blog Posts
Categories
Blog Archives
Free Franchise Updates
Receive updates on the latest and greatest franchises and business opportunities delivered to your inbox each week.
Connect With Us