Becoming a franchisee is an attractive prospect for many entrepreneurs. By investing in franchise businesses, whether they’re care franchises or internet franchises, franchisees can head up their own business without having to take on the significant risks that usually come with starting a new business. That’s not to say that being a franchisee isn’t challenging, but it is a much more realistic prospect for many aspiring business people.

Master franchisees are a little different from regular franchisees. They have additional responsibilities, but the greater rewards on offer offset these. Below are some of the benefits of running a franchise as a master franchisee.

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What is a master franchise?

Master franchising is slightly different from regular franchising, although the core concept is the same. The difference is that whereas a regular franchisee is just one of many franchise operators running a franchise of a business, a master franchisee operates as an extension of the franchisor’s business in a specific territory or area. They can then sell franchises to other franchisees in the area and act as their franchisor.

Because of this unique arrangement, master franchising is a popular method for expanding a business globally. It enables the franchisor to expand their business into new markets while placing the local enterprise under the control of someone they trust using the franchise model.

Franchise and royalty fees


One of the main benefits of becoming a master franchisee is that it has the potential to be a very profitable endeavour. Master franchisees will have to take on responsibility for scouting out franchisees in the new market and will be expected to provide them with the training and support they need to get their franchises up and running. As is always the case with franchising, this will require the master franchisee to invest some of their own money.

However, master franchisees can expect bigger returns than regular franchisees. These larger returns reflect the additional responsibilities of a master franchisee. Some of these profits will go back to the original franchisor. Still, a significant percentage of the franchising fees and ongoing royalties will go into the pocket of the master franchisee.

Take advantage of a proven business model

One of the key benefits for franchisees is that they have a proven business model on their side in any franchising arrangement. Master franchisees are in an even better position; they are entering into an entirely new, fresh market with franchise opportunities UK that have already proven successful enough to warrant significant expansion into a new market.

Master franchisees don’t have to spend time reinventing the wheel or trying to come up with a business model that works as a franchise. Instead, they can hit the ground running and immediately get to work promoting the franchise and finding local franchisees to sell the franchise opportunity to.

Prestige and influence


Operating as a master franchisee carries a significant amount of prestige with it. Master franchisees also have influence and financial leverage. If you can prove your worth to your franchisor, they may well want to consider you for a senior role within the core business. In the long-run, you don’t just stand to profit from your work as a master franchisee; you could be positioning yourself for a long and distinguished career within the franchisor’s network.

Master franchisees are much closer to being a full partner in the franchisor’s business than regular franchisees. As a result, they often end up becoming valuable assets to the original franchisor.

Opportunities for additional revenue streams

Master franchisees generally have much more latitude to operate as they see fit. It is in their franchisor’s interests to give them more freedom to operate so they can do whatever is necessary to succeed in the franchise they are representing. With this additional freedom comes more opportunities to sell add-on services to franchisees and open new revenue streams.

For example, master franchisees can offer their franchisees bookkeeping and accounting services in exchange for additional fees. These services can simplify things significantly for franchisees and convince otherwise uncertain prospective franchisees to invest.

Exclusivity

Master franchisees take responsibility for operating a franchise in a new market or territory. In the majority of cases, their franchising agreement will grant them exclusivity in the new territory, meaning that only they and the franchisees they recruit can operate there. As a result, master franchisees will benefit from every single franchise in the market and won’t have to worry about competing with anyone else.

If you thought that franchising represented a potential business opportunity for you, master franchising is an even more attractive proposition. Master franchisees stand to benefit substantially from their arrangement. Not only can they profit from their franchise, but they can set themselves up for a prominent role within their franchisor’s business. This is not an easy undertaking, but the potential rewards are well worth the effort. There are many master franchises out there, and you can start your search online on a franchise UK directory.