Do you want to know about Single Unite Franchising? Know Everything Here

2 min read

If you do thorough research on the franchise business, then you will find that the single-unit franchise is the most common form for the Franchising in the USA. In this relationship the franchisor allows the franchisee to operate in one location to use the trade name, marketing plan, service mark, and operating system. This generally deals between the franchisor and the franchisee directly. It is the oldest form of commercial franchising.

This model was first introduced in a brewery of Europe as the commercial form to sell their products at the local pubs. Nowadays, it is the most popular form of Franchising in the USA also.

What are the differences between the single unit and multi-unit?

In the multi-unit franchising, the franchisee can operate in different locations as well and they have to hire staff to manage the business. On the other hand, in the single unit franchise, the franchisees run their own unit.

However, there are many leading brands like McDonald’s that do not offer multi-unit franchise development under one agreement. In case any franchisee wants to operate in a different location, then he has to do separate single-unit franchise agreements for each of the locations.

The multi-unit is relatively expensive than the single-unit franchising. It has been seen that the franchisees of the single unit franchising stay more motivated and focused that eventually leads them to gain success.

Why you should need professional help?

If you check any professional suggestions regarding acquiring a franchise, you will see the recommendation of professional help. It is a mandatory step to review the offers of the franchisor through the FDD. The Federal Trade Commission or FTC has stated that the Franchisors have to include the following paragraph on the first page of the Franchise Disclosure

Document that says; “The terms of your contract will govern your franchise relationship. Don’t rely on the disclosure alone to understand your contract. Read all of your contract carefully. Show your contract and this disclosure document to an advisor, like a lawyer or an accountant.”

Through this statement, it is clear that it is quite mandatory for all the single unit franchises to take the professional help of the franchise lawyer to evaluate the agreement before signing.