§ 31008 Area Franchise Definition

• •An 'area franchise' is a deal where one person (the franchisee) gets the right to run more than one store or business in a certain area.
• •The person giving the right (the franchisor) lets the franchisee open multiple locations, but only in a specific place, like a city or region.
• •This is different from a regular franchise where you might only get to open one store.

Imagine you want to open several McDonald's restaurants in Los Angeles.

If McDonald's gives you permission to open more than one restaurant, but only in Los Angeles, that’s an 'area franchise.' You can’t open one in New York unless you get a different deal.