Historically, franchise companies often sold their opportunities to single-unit operators (mom and pops as they are typically called). Now, many franchisors prefer to sell their franchises to multi-unit operators (also called area developers).
Multi-unit operators/area developers are franchisees who have been given the right to establish and operate more than one unit in a specified geographic territory. The franchisee often pays a fee for the territorial rights and agrees to meet a performance obligation or schedule for unit development within that area.
Becoming an area developer offers several benefits.
For instances, you can:
- Eliminate the risk that the area you are interested in developing will be saturated by another franchisee.
- Develop more units in closer proximity to your existing units.
- Diversify your risk if one of your locations underperforms.
- Protect the brand by controlling the quality of your product or service.
- Retain full control over your local marketing to receive the maximum benefit.
For more information about becoming an area developer or to receive information on which companies offer multi-unit opportunities, submit the request form on the right.
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