What Are The 4 Types Of Franchising?

Marc Camras

What Are The 4 Types Of Franchising?

Here are a few interesting statistics about the Franchise Industry:

On average, 300 companies start franchising each year.
Currently, there are over 750,000 franchise units across the U.S.
In the U.S. alone, franchises employee over 8 million people.
1 in 7 businesses is a franchise.
There are about 3,000 different franchises currently operating across the U.S.

So now that you know, a few facts, did you also know that there are 4 types of franchising? That’s right; not all franchising is the same!

Purchasing a franchise takes a lot of research to determine what kind of franchise you want to open (food, retail, etc.) and how much you need to open one.

In past articles, we’ve gone over similar topics such as:

These articles give great insight into how to start your franchise journey and what it takes to own and operate a franchise (with our help, of course!).

In today’s article, we will be breaking down the different types of franchising that you will need to know in order to choose the right franchise for your future business.

Single Unit

This is the most common type of franchise option. You would be the owner/operator of one “unit”. This is a good option if you are just getting started with Franchising and want to get your feet wet!

Multi-Unit

Like the name states, you will be agreeing to open up more than 1 business. With this type of operation, you will need to hire more people to oversee and manage your units compared to operating one with just staff in a single unit franchise.

With this option, you will not be expected to open all locations simultaneously, and you can reap higher profits and grow within the business itself.

Area Developer

For a more seasoned veteran of the franchise industry, you can choose to become an area developer. This means that you will open multiple units in one specified territory. No one else is allowed to open the same franchise within your territory as you have exclusive rights for development granted by the franchisor.

Master Franchisor

This is the only type of franchise agreement that allows you to franchise a unit that you currently franchise to another franchiser. With this option, you agree to open up a certain amount of franchises in your territory, and after that, you can franchise them out. This is called sub-franchising. It’s a great way to make residual income, and you have the highest levels of support from the main franchisor/company.

Want More Information On The 4 Types Of Franchising?

If you’re interested in learning more about the 4 types of franchising and which option is best for you, send us a message today!

Here at MVision Franchise, we pride ourselves on the ability to help our franchisees thrive! Dr. Marc Camras and our team boast a wealth of knowledge and the largest network of franchises and startups to choose from.

To learn more about Marc Camras or our company, MVision Franchising, browse our website and review our articles like “Fast Casual Franchises To Consider In 2022”.