If you have a strong set of operations, marketing and management skills and want to take your business pursuits to the next level, you might be ready to become a master franchisee. Becoming a master franchisee is a huge undertaking with a great deal of responsibility, but it does have a number of fantastic benefits. In this blog, we’ll be taking a closer look into the benefits of becoming a master franchisee.
Expand your franchise network
The business model of any franchise is designed specifically to enable expansion and to grow and develop a business so that they can achieve dominance in their market as quickly and as easily as possible. However, without a master franchise agreement, this rapid growth is not always possible. A business may not have the resources, experience or expertise required to open units in new areas, but the conditions of the market may show that this is the best move to make. For example, if two similar businesses are competing to become the leading business in their chosen industry, putting a hold on their expansion may give their competitors the opportunity to gain a foothold in new markets and claiming a significant amount of the share while your business takes a hit. With master franchising, you can expand your franchise network in cases where it’s not possible within the boundaries of traditional franchising.
Influence and prestige
Starting master franchises can give you significant status in the industry, and with that, comes financial leverage and business satisfaction. You can become influential in your chosen business, and if your work is successful, it will not only lead to significant profit but you will also become a key part of the network of your chosen franchise. As the business expands and develops into new avenues, you, as a master franchisee, will become an integral part of the business as a whole which can allow you to grow both personally and professionally.
For the most part, master franchisees will be responsible for operating the master franchise alone, with the help of support staff, a trainer, an administrative assistant, and potentially a sales executive to help you sell the business. As your master franchise grows, you may need to add more employees to your team as you are responsible for developing and expanding your territory and providing support for your franchisees. You will not need many employees while your franchise is still growing, and many master franchisees have a very small team that consists of a trainer, a consultant and an administrative assistant.
Offering your franchisees add-on services can offer you an additional source of profit. Potential add-on services that you could provide include consultation services, people handling, bookkeeping and accounting in exchange for additional fees. While the main portion of your revenue will come from your royalty fee and franchising fee percentage, you also have the opportunity to generate some profit from certification and training. Any additional profit that you gain on top of your profit from the royalty and franchise fees is worth the investment.
Established business model
One of the most significant benefits of making the commitment to become a master franchisee is that you will have a fully-formed franchise package available to you with brand recognition that is already established on the market. You wouldn’t have to take on the enormous task of getting the business off the ground as you will be handed a proven business model with a system that has already experienced success. Everything is ready and waiting for you to take on the challenge, so you can get to work straight away and help to push the business even further.
As a master franchisee, you will be granted territory exclusivity by the majority of master franchise agreements. When you take on the role of master franchisee of your area, that specific territory belongs to you and to the franchisees that you hire. You don’t have to worry about being in competition with the same franchise as your own, which can provide you with a wealth of opportunities regarding expansion and growth.
For more information about how to franchise your business or become a master franchisee, take a look around the Franchiseek global franchise directory.