Master franchising is when you partner with a franchise company and own an entire territory. The territory could be as large as a state. The role of the master franchisee is to add new locations within their territory and support the franchisees that own the locations.
In exchange, the franchise company pays the master franchisee a substantial share of both the franchise fee and the on going royalty. This could build into a extremely lucrative, residual income stream.
Both the franchisor and master franchisee benefit from this unique arrangement. The franchisor will grow more quickly as a result of using this master development strategy.
The master franchisee is motivated to add as many qualified franchisees as possible to expand their business, and earn franchise fees and royalties.
Master Franchisees own and enjoy a quality of life business. Here are some key characteristics about the typical master franchise:
Build equity in the business at a much faster rate than a normal business. You will be amazed what a developed master franchise is worth.
Very few customers. Your customers are your franchisees.
Very few employees. Typically you will operate without the need for employees, After establishing the territory, many masters will semi-retire as they benefit from strong residual income and spend one or two days a month in the office.
Very little office space and low overhead. Most master franchisees work from a home office.
Own an exclusive territory. Only you and your designated franchisees will be allowed to develop franchises in your area.
More freedom exists in a master franchise than a normal franchise. You are not operating each unit, just mentoring and supporting each franchise owner.
No need for experience in the specific industry. You will receive industry specific training and support from the corporate office in the beginning and ongoing.