Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

Master Franchises Explained



Free PDF Download
Factoring Offers Hope for Companies Struggling with Cash Flow - By Michael Hemenway

Name: Email:


hile looking at different franchise business for sale offers, you must have come across the term “master franchise”. If you are wondering what it is, here are the details:

What or who is a master franchise?

A master franchise can be a person or a business entity who buys the right to promote and sell units of a franchise in a specific area.

Sounds like an Area developer. What is the difference?

The biggest difference is that unlike an Area Developer, a master franchise is not bound to open and maintain units. He or she can open one unit for training or as a model unit; but his or her prime focus is to spread the name of the franchisor in the chosen market. A master franchisor also gets to keep a part of the franchise fee and royalty fee that people who buy a franchise pay to the franchisor. Also, a master franchise is supposed to train the people like a main franchisor in many cases.

Sounds good, can I get one?

Since the function of a master franchise is like a franchisor, only experienced people are considered as master franchisees. Then again, not all franchise opportunities offer this program. Many times, international franchises use it to spread faster in a new country. Also, your net worth has to be really good to qualify as a master franchise.

How big will be the area?

It can be anything between a state and a country! Among different franchise business for sale offers circulated by a franchise concept, a master franchise has the largest area. If the master franchisee opens the required number of units within a given time-frame, the area is more or less exclusive.

How is the return of investment?

A master franchise has more than one channel of earning. Besides getting a part of the franchise fee and the royalty fee, the master franchise can earn from the unit it decides to open (it also gets reduced opening fees when it opens a unit of its own) and also by distributing products to the franchisees. Additionally, it can also have real estate interests.


Related Articles

  Be Impressed, Grasshopper, Not Impressive
  Master Franchisee vs. Franchisee?
  Franchise Marketing Systems Client Growth- Q2 2012 update
  Franchise Opportunities many don't know about.
  Franchise Marketing Systems Client Growth
  Franchising FAQs
  Aire Master is Sweeping the Franchise Industry
  Franchise Expansion in 2012.
  Master franchises
  Most Popular Master Franchise Opportunities
  I Hate MBAs/Redux
  Bring the Four Swordsmen of Client Service With You
  Low Cost Franchises Offer Way to Own Your Own Business
  Exploring the Four Types of Franchises You Can Buy
  Reasons to Consider Franchising
  Franchise Clique, Industry Leader, is Signing New Business Every Day
  SME's - why is franchising not more popular in Africa
  Franchise Formats
  What are the Most Profitable Franchises?
  Franchising in Indonesia

Home > Franchises > Michael Hemenway > Master Franchises Explained >

Free PDF Download
Factoring Offers Hope for Companies Struggling with Cash Flow - By Michael Hemenway

Name: Email:

About the Author: Michael Hemenway

RSS for Michael's articles - Visit Michael's website
Founder/CEO of brandEXPANSION the only firm of its kind serving all aspects of franchising. With our industry background and successful franchise units established around the world, we have a time tested strategy to assist you in locating, developing, advertising, marketing and executing the optimal franchisor and franchisee strategy. brandEXPANSION brings over a dozen years of hands on experience in the field. This gives us an insider’s perspective on the business of franchising, which is an invaluable asset in supporting your objectives. We simplify the franchise experience by providing on going consulting and support designed to deliver the most profitable franchise investment you can attain. brandEXPANSION has placed franchise units in over 1000 locations nationwide. This includes the strategy and writing of franchise documents, over 600 franchise real estate locations selected, over 200 construction projects completed and over 250 proven franchise companies currently represented. The company also operates the leading franchise-industry social networking site, http://www.FranchiseUltraLounge.com.
Click here to visit Michael's website.
Dashed Line

More from Michael Hemenway
FranchiseeFranchisor Relationship Requires Mutual Trust Respect
Translate Your Current Job Skills to Franchise Ownership
Key Factors to Franchise Success
How Franchising Works
The Small Business Administration Can Be a Powerful Ally for Franchisees

Related Forum Posts

MLM Master Distributor Needed MLM Master Distributor Needed
franchisebrief.com good clean design franchisebrief.com good clean design
Re: Franchise Support. What is it to you? Re: Franchise Support. What is it to you?
Clothing Franchises Clothing Franchises
Re: Great at one thing OR good at everything? Re: Great at one thing OR good at everything?

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Expert
Leanne Hoagland-Smith
@coachlee
Visit website



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Writing Effective Business Letters

6 Best approach to gain new business

Entrepreneurs – How To Grow Your Taxi Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.