Master FranchiseStepping up to a master franchise can be a smart decision for the right person
The system is one of the best kept secrets in business ownership today. It allows the business owner to develop a large business within a relatively short time period, yet has an extremely high success rate. Recent surveys show that these owners experience yearly incomes of $150,000 to $1,000,000 or more a year. They build an increased net worth or equity in these businesses of $500,000 to $10,000,000 or more, much quicker in comparison to other businesses.
What is this concept?
Imagine coming up with the idea of a new franchise concept that explodes in your area with dozens of new units opening up. Imagine having control of this concept and receiving royalties and franchisee fees on a consistent basis. Imagine access to the best business experts to help guide you in your new venture to build your organization to last. This opportunity is extremely rare, yet there are such businesses available if you know where to look. This unusual highly successful opportunity is called MASTER FRANCHISING.
As a master or regional franchisee your ways of generating income are expanded over that of a normal franchise. With a normal franchise you are generally offering the product of service directly to the end use customer such as in a retail store. With a master franchise, you can generate income through your own stores, if you wish, with a significantly reduced royalty and franchise fee.
With Master Franchising you get:
- Franchise Fees – When you place a new Franchise, you receive a franchise fee. Most franchise fees are between $20,000 and $50,000 and in a typical master franchise program you receive 40% – 50% of that fee.
- Ongoing Royalties – This is the ultimate income source. Once you help set up the franchises, you receive royalty income or annuity type income for the rest of the life of those franchises. 2-5% of your franchisee’s gross monthly volume can be expected.
- Products or Additional Services – Often products or additional services needed by the franchisee’s outlet can bring excellent additional income.
- Real Estate – If real estate is involved with the franchisee’s location, often the master franchisee can become involved in the development of sites and receive other types of real estate related income.
- All of the benefits mentioned above but without the expense of having to develop the concept from scratch
- Control of the successful franchise system in a specific geographic area
- A proven track record that works
- Brand name and even a partner in the form of a corporate office
- Master franchisees to give you valuable support, latest innovations and business expertise when you need it
- The prestige of owning a master franchise and controlling an entire area can give you great satisfaction.
- Your main job will be to act as a business consultant to your franchisees and help them succeed in their own business.
- You will be associated with the elite brand name of the franchise as the main developer of an area even through it will be your franchisees investing their money.
Improved Quality of Life
Master franchisees own and enjoy a quality of life business. Here are some key characteristics about the typical master franchise:
- Very few customers. Your customers are your franchisees. You help support a small number of franchisees who typically own several franchise units each.
- Very few employees. Typically you will operate a master franchise by yourself and then expand to have an administrative assistant, a trainer or other support person and a franchise sales person. As your master franchise grows larger you may need to add more staff, perhaps a general manager to run the operation so you may back away almost completely, if desired. We have found that many master franchisees, after having worked for three to seven years, can semi-retire and live off of an extremely good income and spend one or two days a month in the office.
- Very little office space. Many master franchises can be started out of a home office. Once you have enough franchises in place then you can expand to an outside office.
- You build equity in the business at a much faster rate than a normal business. Once you place a few franchises or open your own stores, you increase the value of your business significantly. Not only do you have an existing business with cash flow, you have additional franchise opportunities available which gives the master franchise a higher value. Typically a master franchise will make four to nine times the earnings rather than the typical 1.8 to 2.8 times the earnings of a normal business.
- Low overhead. You don’t have to jump into the business with a large office, staff and other overhead expenses. You can expand as you go.
- You have the option of setting up your own franchises at reduced rates. As you open your own outlets you create another asset value. You now have your master franchise with a specific value and also your own franchise with its value. As the value of your franchise increases, it increases the value of your master franchise. They are separate entities that you may sell when you would like.
- You own an exclusive territory. Only you and your designated franchisees will be allowed to develop franchises in your area.
- More freedoms exist in a master franchise than a normal franchise. You help set the standards of the franchise in your area.
- You stay up to date on the latest technology. Being part of a larger franchise system allows the best ideas to flow into the corporate office and then into the field. You’ll have your own research and development department built right in.
- You don’t need experience in the specific industry. You will receive industry specific training and support from the corporate office in the beginning and ongoing.
- It can be started part-time and then you may move to full-time as required by the business you bring on.
- Best of all it is a franchise! Franchises as a whole enjoy a 92% success rate. Master franchises typically have an even better success rate than the normal franchise. All you need to do is find the right master franchise for you. Master Franchising or regional development franchises as they are sometimes called, are the best kept secret and are receiving more recent attention from established corporations as they engage in greater international growth.
For more information or to see if you qualify, contact us or call 847-426-7354.