A unit franchise is the most common type of franchise relationship. In a unit franchise, the franchisee is granted the right to operate one location or one defined territory using the franchisor’s trademarks, systems, training, and support. The franchisee pays an initial franchise fee plus ongoing royalties in exchange for these rights.
This model is designed for owners who want to start with a single business and potentially expand later.
Unit franchises are the foundation of most franchise systems because they:
simplify onboarding
allow candidates to start with one manageable location
create predictable and repeatable growth
support geographic expansion one territory at a time
allow franchisors to test new markets responsibly
Most franchise brands begin as unit franchise systems before expanding into multi unit or regional development structures.
In a unit franchise:
The franchisee operates one outlet
The franchisor provides training, brand standards, systems and support
The franchisee pays
an initial franchise fee
ongoing royalties
marketing contributions
Territory rights, if any, are disclosed in Item 12
Financial data for that unit type is disclosed in Item 19 (if provided)
Systemwide figures appear in Item 20
Unit franchisees often expand into multi unit operators after their first location succeeds.
Franchise Disclosure Document
Multi-Unit Franchise
FDD Renewal
Material Change
Franchise Examiner
Franchise Exemption
Notice Filing State
Non Registration State
Registration Filing State
Stop Order
Franchise Registration Management
Franchise Territory Mapping
Integrated Document Signing
CRM Tools
2025 Guide to Franchise Registration States in the U.S.
State Franchise Registration: What Franchisors Need to Know Before Expanding
Zors Improves Franchise Registration Tracking With Color-Coded Map Status
Why a Federally Registered Trademark Matters When Offering Franchise Opportunities
E-Signature Integration with a Territory-Centric CRM Is a Game-Changer
Last updated: November 26, 2025
