A master franchising is a type of franchisor and franchisee relationship, where a franchise that we call him as master franchisor as he holds all the rights for the mini franchisee in that territory and responsible in all the recruitment, training and ongoing process for signing or other start-ups. While a master franchisor will be having a lot of benefits like a large fee as the initial charges fee. Businesses are using it for a variety of purposes. But most of the time it is used when companies or brands go for international expansion, while some may use it domestically as well. But the most common use of such services is maintenance companies and service institutions for providing aid to all the relevant institution in that territory. Stay connected and get to know about other interesting facets of master franchising.
Benefits of choosing a master franchisee:
Selecting a competent and reliable master franchisee will lower the duty and saves additional cost and energy for the franchisor. As training and guiding with proper model’s rules and regulations won’t be feasible as he’d have to visit the different locations and territory, that is certainly an extra headache for a franchisor. Moreover, the franchisor can also enjoy other benefits including brand dominance and better brand imaging, and also helps in market penetrations.
Can everyone do the master franchising:
No, the master franchising is not for everyone, especially for the beginners it is certainly not. you will require a large capital with a sound knowledge about the company you will be representing. However, if someone manages to have a master franchising, the rewards are numerous than that of multi-unit franchisees.
However strong management skills will always be required for the master franchising along with increased sales, and better operating and marketing strategies or skills to manage the other franchisee.