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Taking on a Master Franchise

by Cliodhna ButlerDecember 9, 2013

Master franchises offer ambitious individuals with significant funds the opportunity to start a business with a large earning potential as well as a great deal of responsibility.

Masters typically manage an area, region or even a whole country and often also act as area developers for the franchisor in bringing a new franchise concept to a specific geographical area. Masters recruit and manage franchisees within their region and in turn gain a percentage of the sub-franchise sale, fees or profits.

Being a master franchisee provides an excellent entry into business management and can yield huge rewards when the right match is made between a potential investor and a strong franchise concept.

Master franchisees benefit from the full support of the franchisor including training, marketing, distribution and legal and financial guidance both when setting up master and sub-franchises and in the day-to-day running of the business.

The responsibility for a large area offers great earning potential, as a business model is already in place. If there is enough interest from franchisees, company outlets can quickly spread and make a strong impression in the market sector.

Purchasing a master franchise requires a significant investment and so it is essential to ensure that everything is in place before commencing in the role.

  • Substantial market research needs to be carried out across the entire region, as the product or service needs to appeal to consumers in a number of places.
  • It is important that the contract with the franchisor is fully understood so that the master franchisee knows exactly what is covered and expected of them.
  • Clarity must be established as to how much power is given, when and how the renewal process starts and is handled, and the exact territory area controlled.
  • It is advisable to consult a lawyer with some experience in licensing agreements to ensure the contract meets your expectations.
  • Master franchisees must be prepared to handle the pressures of ensuring that franchised outlets are up-and-running successfully across a country or region.

Being a master is certainly very demanding, but with the correct preparation, an excellent management structure in place, good support from the international franchisor and patience, big returns can be made on your investment.

View Master Franchise Opportunities.

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