Multi-Unit Agreements

Franchise Attorney Serving Clients in California

When a franchisor and a franchisee decide to work together, they will often enter into a franchise agreement. These agreements will explain the rights and responsibilities of each party, and they will also describe the relationship between the franchisor and franchisee. In some cases, a franchisee may enter into a master franchise agreement or a development agreement that will allow them to open and operate multiple franchised locations. These types of agreements are often referred to as multi-unit agreements, and they can be beneficial for both franchisors and franchisees.

When a franchisee enters into a multi-unit agreement, they will typically agree to open a certain number of franchised locations over a specified period of time. They will be granted exclusive rights to open these locations in a specific geographic area, and they may be required to meet certain performance criteria to maintain these rights.

Some multi-unit agreements may also include provisions allowing franchisees to open locations in additional areas, and franchisors may provide financial incentives, such as reduced franchise fees, to encourage multi-unit agreements.

At Franchise Legal Support, we represent both franchisors and franchisees in all types of multi-unit agreements. We can help you draft an agreement that best meets your needs, and we can also help you negotiate and resolve any disputes that may arise in the future. We can also help you ensure that your agreement complies with all applicable franchise laws and regulations. If you are considering a multi-unit agreement, contact us today to schedule a consultation with our experienced franchise lawyers.

If you need help with a multi-unit agreement in California, contact us online or call (888) 631-0048 today to schedule a consultation. 

Benefits of Multi-Unit Agreements

There are many benefits to multi-unit agreements for both franchisors and franchisees.

Benefits for Franchisors

• Multi-unit agreements allow franchisors to quickly expand their brand by opening multiple locations with a single franchisee.
• It is often easier for franchisors to work with a single franchisee than to work with multiple franchisees.
• Franchisors can provide financial incentives to encourage multi-unit agreements.
• Multi-unit agreements can help franchisors ensure that their brand standards are met at each franchised location.
• Franchisors can use multi-unit agreements to gain a stronger foothold in a specific geographic area.

Benefits for Franchisees

• Multi-unit agreements can provide franchisees with exclusive rights to open franchised locations in a specific geographic area.
• Franchisees can benefit from opening multiple locations and increasing their revenue.
• Multi-unit agreements can help franchisees build a strong relationship with a franchisor.
• Franchisees can use multi-unit agreements to gain access to financial incentives offered by franchisors, such as reduced franchise fees.
• Franchisees can benefit from the support and guidance that franchisors provide, including training and marketing assistance.

Components of a Franchise Agreement

Your most important contract will be your franchise agreement. It is necessary to consult with a franchise attorney if you have any questions about your franchise agreement, to clarify any ambiguities, and to understand the applicable laws, regardless of where you are located. Despite non-negotiable parts of the franchise agreement, we bring a forward-looking perspective to our franchisee clients.

In addition, we assist multi-unit franchisees in negotiating development and master franchise agreements. Franchisees who own multiple brands or purchase multiple territories or units are often willing to negotiate more concessions with franchisers. If you decide to expand your business in the future, you can make sure you have the space to expand by obtaining a development or master franchise agreement. Our negotiations will include, among other things, looking at:

• The territories
• Any site selection/development requirements
• Rights of first refusal
• Default provisions
• Fees
• Timeline
• Exit options like transfer and termination

How Our Experienced California Franchise Contracts Attorney Can Assist You

Our franchise lawyers have extensive experience representing both franchisors and franchisees in all types of multi-unit agreements. We can help you draft an agreement that best meets your needs, and we can also help you negotiate and resolve any disputes that may arise in the future. We can also help you ensure that your agreement complies with all applicable franchise laws and regulations.

If you are considering a multi-unit agreement, you should contact Franchise Legal Support as soon as possible. We can review the agreement and help you understand your rights and responsibilities. We can also help you negotiate the terms of the agreement, and we can help you ensure that your agreement complies with all applicable franchise laws and regulations.

If you need help with a multi-unit agreement in California, contact us online or call (888) 631-0048 today to schedule a consultation.