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A "satellite" is a unit that is smaller than the full service store. It typically has less equipment and resources. It often depends on the related main store for full products or services; hence, it's called a satellite store.
Franchise owners sometimes expand into surrounding territory by opening up satellite stores that do not have as high of an initial investment as the main store. Their main store still has available resources that can work to support the satellite. The two stores can leverage their resources together.
For example, a small satellite quick-print shop might only have copying machines and so could rely on the main store in a nearby location for fulfilling customers needs in large format or off-set web printing.
Some franchisors do not allow satellite stores because they often do not meet system standards in equipment and resources to provide immediate full service to customers.