Which Master Franchise is for you?
There are many companies with master franchises looking for partners to spread the word and the name of their business and to get their logo and brand out there to a bigger area and a mixed demographic.
The fee is always a consideration and some are in fact low cost master franchises. One in the travel industry could be from around £3000.00 per sector or a hair salon with minimum investment £15,000 plus salon costs.
The fee structure can be as follows; for around £100,000+ new opportunities will provide the agreement for a certain period of years, finance assistance through a third party, initial training and ongoing training, fit out of the premises, equipment including tills and software and some stock. Usually this would be per unit and often a discount on the first one.
Generally with the best master franchises the company owner will send in their best store designers and visual merchandisers to share their knowledge and expertise, spend some time training the staff, have planning and marketing meetings and workshops and prepare the new one for its grand opening.
Some opportunities are available where the owner will sell the rights to a whole region or country. For instance the best ones in coffee shops or cafés will have a fee structure and the brand owner will expect the following; fee, royalties, investment for equipment costs, provide site location and attendance at training sessions.
For this fee the franchisee will receive multi-year brand license, area exclusivity, full training, lay out plan and product supply and start up assistance.
The opportunity to take a franchise business with a tried and tested business model is often an easy option for a new business owner. More experienced business owners can step back and look at the bigger picture of paying the fee and of owning, managing and benefitting from the work of many smaller businesses, as they own it over a larger licensing area.
Obviously costs, responsibilities and revenues are always reflected in the price of a master franchise. Whether they are low cost ones or not are determined by its successful national or world-wide brand and its position determines the fee structure and entry level.
There are national, territorial, county and local areas that it could offer to other recruits generating immediate income and almost guaranteed success for the brand owner as the distribution of the product or service is spread across many people who are actually taking on the risk at the local level.
Master franchise opportunities if in the right industry or business which can be cyclical create an incredible bounty for the person that sets up and manages tens or hundreds of smaller stakeholders representing the brand and the products or services.
This is a great route to success ensuring the initial it has already shown its ability to generate a stable and consistent business over time. Please be sure to check out our resale page if you decide you want to sell your franchise.
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