Franchise Spotlight: Master Franchise
Get to know more about the master franchise model.
Paying a large initial fee to the franchisor can give you the chance to be a master franchisee. You will then secure the rights to develop the business in a specific region under the brand name.
You will then need to recruit franchisees in that area under the brand name. You will also be responsible for training and supporting these recruited franchisees. In return, you will collect the royalties and initial investments from these franchisees
Master Franchise Industry
The master franchisor will work as a type of mini franchisor that works under the parent company. Franchisors will use master franchisees to quickly grow the brand and business. The contract between the master franchisee and franchisees will be a bit more complex as there will be three parties involved.
The agreement will be beneficial for all parties involved. The master franchisee will be able to operate under a recognisable brand name and will be able to adopt the systems of the parent company. They will also earn royalties and fees from franchisees.
The agreement is advantageous for the parent company because they can expand their business into new territories that they may not be well acquainted with. The master franchisee can help with knowledge of the local economy, language and more.
Before becoming a master franchisee, make sure you know exactly what the financial pay off can be and what the requirements are.