- Front Page
- Biz Tools
The Franchise Owner's most trusted news source
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.
Mr. Blue MauMau's my name and speaking on behalf of franchise buyers and owners in this patch of reef is my game. I'm a fish that sports glasses, a bow tie and a serious attitude of wanting to know the truth when it comes to anything about franchises.
You can reach the editor at [email protected] or call +1 (270) 321-1268.