With new business opportunities come up in the franchising industry, aspiring entrepreneurs are finding the concept of -Master Franchise- as a better option. Master franchising is a very dynamic and lucrative business concept of the franchising industry. The Master Franchisor is provided the responsibility of helping develop and grow the franchise brand in an exclusive territory. The master franchisor buys the development rights to an exclusive territory. In many cases this territory can be quite extensive. The master franchisors work towards generating new business opportunities within that specific area.
Key responsibility areas of a master franchisor:
To facilitate franchise sales of the particular brand to qualified prospective buyers. The franchise company will provide assistance in the process of selling a franchise business.
The Master Franchisor needs to own and operate at least one unit within his territory. This unit will be help in generating a revenue stream, where prospective buyers can come and see the working module of the business.
The master franchisor also has the responsibility of providing training to prospective buyers.
The master franchisor needs to analyze the territory popular and the number of potential units a specific territory can accommodate.
Also needs to work out on new business opportunities so that the brand gets more popular.
Essential qualities of master franchisor’s
To buy the best master franchising business opportunities ideas, an entrepreneurs needs to possess certain qualities, such as:
Familiarity with the local market of the territory for which master franchising is offered.
Experience in the relevant industry. This is not always essential but having experience can be an added benefit for the franchisor.
The master franchisee must have the budget to purchase the franchise rights, set up units and develop the franchise business in a particular territory.
Having management skills is must for owning the rights of master franchising.
Various sources of income for master franchisors:
With master franchising business opportunities ideas, the franchisor enjoys new ways of generating income which is generally higher as compared to any other normal franchise business.
Franchise fees: In a master franchise network you receive a franchise fee when you sell a franchise. In a typical master franchise program the owner gets a good share of the franchise fee.
Ongoing royalties: With the opening of a new franchise outlet within the territory of a master franchisor, the owner gets benefitted of additional royalty income for the rest of the life of that franchise. This is the ultimate income source.
Products or additional services: Often products or additional services needed by the franchisees are sold at the master franchisor’s outlet. This is a great source for additional income. But for this you need to look out for best business opportunities in master franchising category.
Real estate: If real estate is involved with the franchisee’s location, often the master franchisors gets involved in the development of sites and doors get open for receiving other types of real estate related income.
In conclusion, master franchises are best option for entrepreneurs with sufficient financial resources to develop a network of franchises in a specified country or region. However, you need to look out for the best business opportunities in this area to enjoy success.