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What are the Benefits & Demands of a Master Franchise?

Master franchises offer entrepreneurs with substantial capital a chance to run a high-earning business covering a large region or even a country.


This can be great instruction into business management and if the processes are done in the right way, can be a great success. And conversely, there is more to lose if things go south.

Master franchisees will not only receive the company's structure and access to its training and support system, they gain the authority to appoint, train and receive a proportion of fees from 'regular' franchisees.

This responsibility for a large area can yield massive earnings. With a model already in place for marketing the brand and distributing the product, if there is enough interest from franchisees, company outlets can spread far and wide rapidly offer a better opportunity for making a strong impression in the franchise’s sector.

However, a master franchise requires significant investment levels and so it is vital that everything is in place before beginning in the role.

Substantial market research should be undertaken across the whole country or region, as the product or service you intend to offer needs consumer appeal in a variety of areas.

It is important that the contract with the franchisor is agreed in a straightforward, uncomplicated way so that the master franchisee knows exactly what is covered and expected of them.

Issues in it include how much power is given, when the renewal process starts and how to go about it and the exact territory area controlled, particularly for regional master franchisees.

It is prudent to consult a lawyer with some experience in licensing agreements to check the contract.

It is worth remembering that master franchisees will be running two separate businesses, so the person must be prepared to handle the pressures of ensuring that franchised outlets are up-and-running successfully across a country or region.

This position is definitely very demanding, but with an exceptional management structure in place and the right support from the international franchiser, big returns on investment can be made.

A certain amount of patience is required though and master franchisees must concentrate on the long-term, as there is a chance of some local franchisees failing to make an impact and have to close.

Some key benefits to a Master Franchise

  • Territorial Control: Gain exclusive rights to operate and expand the franchise in a defined region.
  • Higher Earnings: Potential for substantial profits as you earn a percentage of sub-franchise sales, fees, and profits.
  • Business Management: An entry into business leadership with the support of an established brand.
  • Proven Model: Leverage a successful business model that's already in place.
  • Support: Access comprehensive support from the franchisor, including training, marketing, and legal guidance.
  • Territorial Expansion: The opportunity for rapid and impactful market penetration.
  • Large Investment Potential: Suitable for entrepreneurs with significant capital.
  • Market Growth: Contribute to expanding the franchise network within a country or region.
  • Legal Clarity: Ensure you fully understand the franchise contract and rights.
  • Preparation and Support: With proper planning and a robust management structure, master franchises can yield substantial returns on investment.

Why not check out the Master Franchise opportunities available in New Zealand via Franchise Direct?

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