Master Franchises

“The master franchise model – a form of franchising premised on extreme efficiencies that drive a high rate of growth –  are wise, high-ROI investments for select individuals.”

Master franchise and Regional Developer investments offer a franchisee the chance to, essentially, act as a franchisor for a larger region. Domestic and commercial cleaners, maintenance companies, fast food restaurants, senior care and business coaching are some of the most common businesses operated under this arrangement.

Successful businesses have no time for inefficiencies. This is why the master franchise model – a form of franchising premised on extreme efficiencies that drive a high rate of growth –  are wise, high-ROI investments for select individuals.

With this model, the franchisor gives an individual (or entity) the right to third-party operations of franchising activities within that defined territory. In turn, the master franchisee recruits, trains, and provides support to his or her franchisees, but does not serve in a day-to-day management role of those franchises.  The Master Franchise and Regional Developer model is designed for individuals with significant operational and leadership skills and sufficient financial resources to support the endeavor.

It’s easy to see why the master franchise model can be successful if done properly: it helps solve the geographic concerns many large corporations face. Being able to sell a product or service across a greater number of outlets or regions, the franchise realizes the economies of scale without sacrificing attention to detail at the local level.

But what’s in it for the master franchisee?  Potentially, a lot! He or she nets a significant percentage of the initial franchise fee and ongoing royalties. There are numerous competitive advantages built into this model that the master franchisee benefits from:

  • Great long-term growth potential. Master franchise investments represent a unique opportunity to scale up a very large business and income while others are doing the majority of the hands-on work

  • A reputation that precedes you. A proven brand automatically means that a franchisee can make a strong entrée into a market thanks to awareness that helps soften the sale

  • A grand plan. Those who enter into the master franchise investment model will hit the ground running with marketing and expansion plans, competitive market research, standardized training resources and local financial institution connections provided by the master franchisor

  • The greatest equity opportunity of all franchise types. Master franchise investments have the potential to create extremely sustainable and robust income streams. It will take a while for master franchisees to grow with new franchises and receive royalties so they may want to open their own unit for short-term cash flow and as a model for other franchisees. Franchisees are known to build greater long term equity under this model than any other

The Master Franchise and Regional Developer models are best suited for highly ambitious professionals who want more than another cash flow source – they want to play a leading role in helping grow an established brand. Additionally, master franchisees can profit mightily at the same time.