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Franchise Focus: Build your empire

Franchise Focus: Build your empire

Posted on: February 25, 2016 | Author: ATB Business & Agriculture

You're set on becoming a franchisee. Now it's time to decide whether multiple locations would be a good choice for you.

Multi-unit franchising is when a franchisee enters into an agreement to open and operate a number of franchises within a geographic area, according to a certain schedule.

Risk versus reward

Multi-unit franchising can be riskier, but there are benefits for both parties. Franchisees can grow their business at their own desired scale and franchisors will spend less in training and support.


Franchisees must have restaurant, retail or franchising experience, meet certain financial qualifications, and have a business plan focused on a growth strategy.

Cross-default provisions

Often there is a provision covering multiple franchise agreements, meaning a default on one agreement would be considered a default on the others.

The difference

Single-unit franchisees are more hands on. Multi-unit franchisees need to carefully select, train and delegate.

See more posts in our Franchise Focus series:

Pop quiz!
Finding a match
5 tips to success
Q & A with a franchisee
Understanding the FDD
Your support team
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