Franchise Agreements 101
So, you’ve heard some of the hub-bub about owning your own Cottage Inn franchise location (or ten). We want to take the time to break down the basics of what kind of franchise owner you can become and what kind of benefits you might see from that.
1.) A single-unit Franchise Agreement is the most common and is simply where a franchisor grants a franchisee rights to open and operate one single franchise unit.
2.) A Multi-Unit Franchise Agreement is where a franchisor grants a franchisee rights to open more than one franchise unit.
3.) An Area Development Agreement allows a franchisee the rights to open multiple units over an agreed amount of time within a specified geographic location and to own rights to their specific territory and earn money on each franchise sold in their territory through sharing of the franchise fee and ongoing royalties. Franchise locations within an area can be sold by the Company holding the Area Development Agreement or by the Franchisor. The Franchisor retains the right to approve all franchisees
4.) A Master Franchise Agreement, also referred to as Sub-Franchising, gives a franchisee the same rights as an area development agreement but also gives that franchisee rights to sell franchises to other people within its territory as the sole authority. A master franchisee assumes many of the tasks and obligations of the franchisor such as training and support and receives a portion of the franchise fee and royalties.
So, whether you’re looking at managing a single franchise or more, the sky is the limit for what you can gain from Being Your Own Boss at Cottage Inn, but if all of these words aren’t your think, we’ve also broken down the details in this infographic:
