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Sub-franchise

A sub-franchise is a type of multi-unit master franchise. Sub-franchisees act as independent franchise selling organizations. A sub-franchise's staff are also responsible for ongoing support of franchisees within their given region.

California's franchise regulatory agency, its Department of Commerce, defines subfranchise and a subfranchisor as follows:

"'Subfranchise' is defined.. to mean an agreement by which a franchisor for a consideration grants to a subfranchisor the right to sell or negotiate the sale of franchises in the name or on behalf of the franchisor...the Law defines a 'subfranchisor' as a person to whom a subfranchise is granted."

A sub-franchise will have its own UFOC. And that disclosure document can be incorporated into the main franchisor's UFOC.

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