All along we’ve been seeing single-unit franchising that allows you to franchise a business in a single location. If you see that it’s successful and have learned a lot about being successful in the business, you might want to buy another franchise. However, in the single-unit type of franchising agreements you cannot hold another franchise without first going through the whole process of buying a franchise again.
The answer is Area Franchising or Territorial Franchising. In Area Franchising, you don’t only have the right to buy and a single-unit franchise but also for a whole area. An area can be a whole province, city or district depending on the franchiser.
Do you qualify to be an Area Franchiser?
Single-unit franchisers and Area Franchisers are obviously very different since the resource requirements including finances, people and time needed will be big.
In Area franchising, extensive knowledge of the area is needed. Area franchisees will need to study the market characteristics of the entire area in which he will be setting up outlets. You will need to be very knowledgeable in single-unit franchising and the potential of the business in the area.
If you can invest the needed finances, time and people resources, you might want to look at Area franchising as an option.
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