Editorial

Master Franchises, Area Franchises and Multi-Unit Franchise Agreements

Even if you are just starting to think about Buying a Franchise business, you’re probably aware that Franchise agreements can take many different forms. The agreements may be slightly different from one franchisor to another, but there are essentially four different types of franchise agreements you can enter into.

In the simplest type of arrangement, you can own and operate a single unit franchise at one specific location, or within a specified territory for a home-based franchise business. Most individual owners start with one unit.

If a single unit franchisee wishes to become a multiple unit operator, they must follow the franchisor’s process in investigating whether this is a viable option. Franchisors typically want their franchisees to first meet the standards associated with a successful single unit operation. If those standards are met or exceeded, then the franchisor may actively encourage expansion with franchisees that are successful with their first unit.

The primary determination of the number of units a franchisee is allowed to operate is financial, and is typically a combination of liquid capital and net worth.

In a multi-unit agreement, the franchisee owns and operates multiple franchise units, most often in the same geographic area. Individuals can become multi-unit owners, and groups or “entities” can also be multi-unit owners.

As an Area Developer, a Franchisee owns a large territory with the objective of subdividing and developing individual franchise locations. The franchisor will sometimes require the franchisee to open a certain number of units within a specified time frame.

The Master Franchisee owns the right to a large area with the intention of developing a number of units, also usually within a certain time frame. The difference between an Area Developer and a Master Franchisee is that the Master Franchisee also has the right, and in some instances the obligation, to sell Franchises within the territory to other people.

You’ll find franchisors in all industries that offer master, multi-unit and area agreements to qualified prospects. Three of those of companies are featured here, with information about their particular opportunity.

Beverage Plus offers a distributorship/single unit program as well as a master franchise/area representative program. The master/area representative buys the territory, and the local distributorship operations fit in below that master.

At the time of this writing, the master/area representative receives 25% o franchise fees, plus a significant split of the royalties or product sales revenues.

In some instances, the Beverage Plus master/area representative has complete control of an entire market, essentially acting as a franchise broker. The master/area representative benefits from revenue sharing opportunities, however, the ultimate contract is still a two party agreement - between Beverage Plus and each distributorship/single unit franchisee.

The Beverage Plus master/area representative does not have the legal obligation to perform as a true master franchisee, where the master becomes a sub-franchisor, responsible for all of the Franchising obligations that would ordinarily be our burden.

PostNet is a well-established, far-reaching Franchise Company with operations throughout the world.

PostNet's area development license grants an individual or entity the right to own and operate multiple PostNet centers with exclusive development rights in a specific territory.

PostNet's area franchise license grants an individual or entity the right to assist PostNet headquarters in developing a specific exclusive territory. This assistance includes providing hands-on support in recruiting new franchisees, securing new locations, coordinating the store development process and providing local training and pre-opening support to new franchisees.

PostNet’s Master franchise license grants an entity the exclusive right to develop and franchise PostNet Centers in a particular country with the training, guidance, and support of PostNet World Headquarters.

PostNet also has international single unit, area development and area Franchise Opportunities available in specific countries. Visit their Showcase page to learn more, and to request information about your geographic area of interest.

WineStyles is seeking Area Developers for single and multi-unit locations in other areas. Their goal is to expand throughout North America and beyond using the Area Developer System. WineStyles currently has area developers across the United States and internationally. Each area developer territory has the potential of having a minimum of 50 wine stores within its boundaries.

They are looking for high-energy people and organizations that are ambitious and seeking growth. While prior experience as an area developer and/or franchisee is preferred, it is most important that you have a strong and relentless desire to win.

WineStyles area developers must be willing to own and operate their own WineStyles franchise to use as a prototype, training center and base of operations for expansions within the territory. By opening the first franchise within your territory, you will lead by example and run a business for others to emulate and admire.

As a qualified area developer, you will become part of the revenue stream by sharing in the income from both the franchise fees and royalty revenues in your territory.

For all Multi-unit franchise opportunities on Bison, click here

For all master franchise opportunities on Bison, click here