How does this work?
A Master Franchisor buys the rights to market & sell franchises within a specific territory for a Franchised Company, such as Taco Bell. Not every franchisor offers master franchising opportunities however; those that do are utilizing this strategy to encourage more rapid growth. This could mean huge profit opportunities for you.
Often the best opportunities for Master Franchising are those with brand names you currently do not recognize. Have you ever thought about what it would’ve been like to be on the "ground floor" of McDonald's? Imagine having a concept that exploded into a business where people clamoring to buy your franchise.
Prestigious
In addition to selling franchises, the Master assumes the exciting role of business consultant to the franchisees to help them succeed. This is usually in the form of providing training, sales support and business development strategies. Most Master Franchisors find this to be the most satisfying part of the job.
Financial Freedoms
Unlike other business systems, Master Franchisors truly have the ability of turning their dreams of financial freedom into reality…
Here is a typical example:
You purchase a territory from an automotive franchisor or a computer franchisor for a certain amount of money (your investment). A typical territory can cost between $50,000 and $500,000.
Your agreement with the Franchisor may state that you will receive 50% of the franchise fee and 50% of the royalty income, for each unit sold or opened within your territory.
Let's assume that the franchise fee is $25,000 per unit and the royalty is 6%. That means that for each unit opened in your territory, you will receive $12,500 (50% of the $25,000 franchise fee).
Let’s go one step further; assume that each unit opened will have a gross yearly sales volume of $1,000,000. Each unit is then required pay a royalty of 6% of their gross sales, equally $60,000.
Want to learn more?
Because relatively few franchisors offer Master franchise opportunities, the ones that become available usually sell quickly. Go to www.masterfranchises.com see if there is a Master franchise in your future.
Dan Morris
www.automotivefranchises.com
Master Franchisee vs. Franchisee? - To learn more about this author, visit Dan Morris's Website.
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