Frequently Asked Questions

General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.


What is multi-unit franchising?

Multi-unit franchising is a fixed term that has been used in the USA for many years now. The term is used to describe franchisees who own several outlets or shops.
 
A difference must be made between multi-franchises, where franchisees have the right to open up several businesses under the same name, and pluri-franchises, where franchisees belong to different systems at the same time. As an all-powerful position or the lack of single franchisees can harm a system, both these kinds of franchises are rarely used.

These two kinds of franchise are an exception rather than the rule in Europe for the reason given above namely that a franchisee with too much power or a lack of individual franchisees can harm a system.

In contrast, the strategy of encouraging franchisees to open several outlets is very common in the USA. This is underlined by the fact that a three-day conference was held in Las Vegas at the end of March 2010 specifically for multi-unit franchisees and a magazine is published regularly on this subject. Multi-unit franchising can be very efficient if a franchisee has the relevant business and financial means and so has a greater potential to open up several locations. 

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