08 Sep, 2017

Master Franchise

A master franchise involves managing of two businesses whereby one is a franchise while the other is an extension of a company. This arrangement requires a set of extensive skills. This is the reason why the kinds of entrepreneurs who attain success when they are operating a franchise differ significantly. The master franchise opportunities have wide variances and they cover different markets. Master franchise is a franchising form that allows the business owners to have a right of sub-franchising within specified geographical areas. By using this concept, master franchisees manage single franchises while enlarging the business. This is done by introducing more outlets within allotted territory. The role of a master franchise should be done by someone who has experience in management and sales. These traits come in handy as the master franchisee will not be operating just a single unit but is responsible smooth operations of various other locations. Master franchisees are charged with the responsibility of searching for other franchisees and training them. This also means that they have to create time to offer other franchisees ongoing support when they open their businesses. Master franchise advantages This kind of franchising provides franchises with an opportunity to be part business model that has been tested and proven to be a success. Instead of starting a business venture alone, a master franchisee gets training and continuous support from the franchisor. Being in a master franchise is a chance of getting the most recent technologies that are essential for improvement of the business from the franchisor. The other advantage of being part of master franchise is the freedom to hire experienced employees who can help in the management of the business. This leaves the master franchisee with time to do other things and run another business. The major benefit with master franchising is the opportunity to build a business faster than it would have been possible when in ordinary franchising. The master franchisees get the benefit of earning a fraction of initial startup cost. They also receive royalty payment from franchisees that are in the master franchise organization. The challenge of master franchising is the initial cost which is usually far much higher than what it costs to invest in regular franchises. The other challenge is the amount of resources and time needed before the master franchise starts running smoothly. Master franchisees must be able to multi task. Before investing, it is essential to visit different franchise locations and see firsthand the way they operate.

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