Becoming a franchise owner is an exciting way to start a business. With a brand that is already known, and the training and support of the franchisor, franchising has become one of the best paths to success as a business owner.
Now we’re going to discuss a form of franchising that you may not know about and offers an even more exciting opportunity…the Master Franchise.
What Is a Master Franchise?
Some franchisors offer the opportunity to purchase exclusive rights to a large territory, which can then be divided into smaller territories, and then sold to sub-franchisees. The Master Franchisee (also referred to as the Area Development Agent) at that point operates as a “sub-franchisor”, helping the new sub-franchisees operate.
What are the Advantages of Being a Master Franchise?
The first advantage in becoming a Master Franchise is the outstanding opportunity to create financial growth. Instead of working just one business, you are invested in multiple businesses, creating many income streams.
You also have fewer customers to deal with. You’re not running a business with hundreds of customers coming in and out. Your end customers are now the sub-franchisees, which allows you to remain laser focused.
And finally, the overhead can be much lower than running your own franchise. Many Master Franchises can be run out of home offices, instead of brick-and-mortars or pricey office rentals. Staffing can also be a minimum. A you grow, you may hire an administrative assistant, as well as positions such as a field manager and training support.
Do I Have What it Takes?
Just like investing in a franchise, becoming a Master Franchisee requires certain traits and responsibilities.
- Research is important! Make sure the franchise you are looking at has a solid background and track record for success. Research your proposed territory, also. Make sure the demographics will support the sales you need to make to be successful.
- Seek out other Master Franchisees. Find out what type of experiences they have had with the company. Did they get the support they needed?
- Is the franchise a right fit for you? The business model may be solid, but that doesn’t mean it’s right for you.
- Plan on visiting the franchises. It’s difficult to detect any red flags if you don’t step foot into the business.
What is the First Step?
If a Master Franchise sounds like a good fit for you, the first step is obvious: connect with a franchise consultant that can help you find the right one. They have the training to save you substantial time and effort and are there to help you make a decision that makes sense.
Franchise Matchmakers is a team of franchising professionals that are dedicated to helping people explore business ownership as a career path. Contact us at firstname.lastname@example.org to find out more about franchising options that may suit you.