When you plan to buy a franchise business there are two options for you to consider. First a traditional franchise where the franchisees buy the rights to use the trademarks, logo and business concept of the franchisor in lieu to some franchise fees and royalty fees. The other one is master franchise where the investors buy the rights to market and sell franchises within a specific territory for a franchised company.
The major difference between traditional and master franchising opportunities is that a traditional franchise only has the responsibility of looking after their own franchise outlet whereas a master franchise is responsible to expanding the number of individual franchises within the specified territory apart from looking after their own business within the specified territory and/or region.
Not every franchisor offers master franchising opportunities but this business strategy is mostly used to encourage more rapid growth. Also this brings huge profit opportunities for the investors. In addition to selling franchises within a territory, the master franchisor performs the role of a business consultant to the sub-franchisees to help them succeed in their business. The sub-franchisees don’t have to contact the main franchisor for any assistance or help; in fact they will be in touch with the master franchisor for any help. Assistance is usually in the form of providing training, sales support and business development strategies. This turns out to be the most satisfying part of the job for most of the master franchisors.
Unlike traditional franchise business systems, master franchisors get the chance more revenue for them. They can easily turn their dreams of financial freedom into reality. The master franchise earns a substantial income by keeping a share of the upfront fees as well as the ongoing royalty fees that individual sub-franchisees pay.
Often the best opportunities for master franchising opportunities are those with brand names you currently recognize. This will help you to sub-franchises within your specified territory in a hassle free manner. Never clamor to buy a franchise or master franchise business without doing a research of the market for which you want to buy the rights.