What’s difference between single unit franchise vs multi unit franchise
A single-unit franchise refers to an agreement where the franchisor grants a
franchisee the rights to operate one unit of the franchise. This is the simplest
form of franchising and is often the entry point for new franchisees.
On the other hand, a multi-unit franchise is an agreement where a franchisee
obtains the rights to operate more than one unit of the franchise in a specific
area. This could include a set number of franchises that the franchisee must
open within a certain timeframe. Multi-unit franchising is often pursued by
franchisees who have successfully run a single-unit franchise and want to
expand, or by those with more resources and business experience at the outset.
The main difference between the two lies in the scale of operations and the level
of investment and potential returns. Multi-unit franchising typically requires a
larger initial investment but also offers the potential for higher returns and
efficiencies of scale. It also requires more extensive management skills as the
franchisee will need to oversee operations at multiple locations.
