Learn what potential multi-unit candidates want from your franchise system.
IFA:
Over the past 20 years or so, the world has witnessed both the incredible growth of global brands, as well as an increase in the sophistication of franchise structures adopted to pursue expansion. Many would comment that with the advent of global brands, gone are the days of the ‘Mom and Pop’ operation. In a similar vein, the trend in international franchise expansion appears to be moving away from single-unit franchise development, and toward multiple-unit development, and usually in the form of master franchising, area-development agreements and area-representative arrangements.
Many U.S. franchisors would not today even consider expansion into a new country or market unless they were able to lever off of the abilities, local market knowledge and sophistication of larger candidates.
Of course, each master franchising, area-development agreement and area-representative arrangement is different in its own way, but for the sake of this article the common feature is that each permits a franchisor to appoint a local party to assume some or all of the usual responsibilities of a franchisor in the local market together with a plan to open a multiple number of units. So, throughout this article ‘master franchisee’ will be used to refer to any type of person who acquires the rights to multiple-unit franchises in a given market, without referring to each of the 2 listed arrangements. Carry on reading…
No comments yet.