Differences between Unit, Area and Master Franchises

I have heard the terms “Unit” franchise, “Area Representative,” and “Master Franchise.” What is the difference?

A Unit franchise refers to someone who owns and operates an outlet, like a sandwich shop.

An Area Representative, which is also a franchise relation, refers to someone who purchases rights to a large territory, for example, an entire state, then recruits Unit franchisees within that territory, in exchange for a portion of the initial franchise fee and royalties paid by the Unit franchisee. However, the franchise agreement between the Unit franchisee is with the franchisor.

A Master Franchise, on the other hand, also purchases the rights to develop a large area, but does so whereby the Master functions as the franchisor, actually entering into the franchise agreement with the Unit franchisee. Master franchise relations are commonly used in international franchising so that a franchisor can simply appoint one person to function as the franchisor on their behalf in the other country.

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Trademark FAQ’s

WHAT IS A TRADEMARK? A trademark identifies your business, services, or goods. A trademark can be a name, symbol, design, sound, or even a smell,

Affiliates and Franchising

I hear the term “affiliate” a lot. What does that mean and how does it relate to franchising? “Affiliate” means under common ownership or control.

Differences between Unit, Area and Master Franchises

I have heard the terms “Unit” franchise, “Area Representative,” and “Master Franchise.” What is the difference? A Unit franchise refers to someone who owns and

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I've known Carl Khalil for 17-years as a franchisee, area developer and now as a franchisor. As an emerging franchise, we could not be happier with the guidance and support that we have received from both Carl and Sada Sheldon. Their expertise as well as their level of care has been reassuring. Both lawyers respond quickly and thoroughly for unique situations as well as routine matters like filing the FDD. I highly recommend Khalil Sheldon law firm as a franchise attorney.

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We've been a client of the Law Offices of Carl Khalil & Sada Sheldon for the past years. In my 25 years in franchising, I've worked with many attorneys for my franchising and trademark needs and they are the best in the business.

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Differences between Unit, Area and Master Franchises

Legal Topics

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Trademark FAQ’s

Affiliates and Franchising

Differences between Unit, Area and Master Franchises

Client Recommendations

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