The Master Franchise Guide: Basic Info On This Unique Type of Franchise OpportunityFranchise business opportunities have been a staple of the United States economy for decades. As the entrepreneurial spirit of the American dream continues to grow, so does the franchise industry. There are many different models and types of franchising, however, this article will focus on the specific realm of Master Franchises.

In a typical franchise system, a prospective franchisee buys a unit, store location, or operation from a franchise company. They are then provided the tools by the franchise company to build and grow their business. The Master Franchise system adds another layer of oversight and support to the standard unit franchise model.

A Master Franchise system functions via the leadership of a person or a group of people, who run business and operations for the main franchise company, in exchange for a portion of the royalties paid by the franchisees running individual franchise locations. The franchise company in this situation provides the Master Franchisee with assistance in areas including: unit franchise development, business development, marketing, as well as account retention and customer service.

Typically the Master Franchisee is placed in an undeveloped (develop in this context refers to the process of establishing franchise units) geographic location such as a metropolitan area or state. The Master Franchisee essentially collects the fees paid by the individual franchisees in their region, and then pays a set percentage of those fees to the franchise company.

Owning a Master Franchise requires a level of responsibility and business knowledge beyond that of running a traditional small-medium sized operation. Master Franchisees are responsible for the development and sustained business growth of their defined geographic region. This means not only offering ongoing support to individual franchise owners, but growing new franchise opportunities within their area.

Master Franchise owners are, more often than not, savvy business professionals with an entrepreneurial spirit who have spent time in the corporate structure but have the desire to branch out beyond the confines of traditional management/executive roles. The experience in managing a multi-faceted business structure combined with the drive to expand growth is essential for success in a Master Franchise system.

Owning a Master Franchise requires a more comprehensive management skill-set, however, many franchise companies offer extensive support and training for newly minted Master Franchisees. This is something important to consider if you fit the profile of a Master Franchisee

and are considering purchasing one. If a franchise company doesn’t provide training for their system, be wary. Part of the appeal of becoming a Master Franchisee is taking advantage of, and exceeding, the proven model of success a franchise company provides. If said franchise company indicates to you that there is little or no training process involved, it may be time to look elsewhere for business opportunities.

Master Franchise systems, while still a relatively new evolution in franchising, are an essential and largely beneficial component to a greater franchise business model. Master Franchises allow successful business models to penetrate new markets quickly with a higher competitive advantage compared to start-up businesses. Additionally, positioning Master Franchisees throughout different geographical regions allows individual franchise units easier, and more frequent access to a more skilled level of upper management than competitors can typically afford. If you believe you would be a perfect fit for the role of providing management for a network of individual franchisees and want to take advantage of a business model that is superior to local competitors, then purchasing in a Master Franchise may be an ideal investment.

While Master Franchising is a very complex business system, it offers additional benefits that are impossible to achieve without the structure created by the franchise company. If you have any additional questions about this topic, please visit the Master Franchise page, or contact OpenWorks anytime, we would be happy to provide you with any additional information not discussed in this article.