Multiple Unit Franchising Law and Legal Definition

Multiple unit franchising is a form of business format franchising in which the franchisor awards to the franchsee the right to operate more than one unit within a defined area based on an agreed upon development schedule. In this type of business the owner is required to actively involve in the day to day operations of the business. In a multiple unit franchising the franchisor who decides to expand into a new geographical area without enough resources or staff to handle this growth themselves, will enter into a Master Franchise, Sub-franchise or an Area Development agreement with a party who will use their resources to develop the franchise network by granting unit franchises to others or will establish their own outlets and provide the training and local ongoing support.