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Apr
08

Master Franchising – The Ultimate Franchise Business Model

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Levels of Franchising

If you are thinking of buying a franchise, it is important for you to know the different levels existing in this business. Master franchising is the highest level, and getting there should be every franchise owner’s ultimate goal. The ones who purchased a single franchise unit are at the first level. On the other hand, those who buy several of them, are on level two.
The third level is for those who are looking to cover a certain area and develop it on behalf of the franchisor in the future. They are called the Area Developer Franchisee and they may take up an area as big as an entire state if allowed so by the franchisor. For this level, business owners are required to open up several franchise stores at once, with all the others to open up following a specific schedule. Then comes the forth and last level of Franchising.

Master Franchising Level

After level three comes the master franchising level. It’s the top rung of the ladder, so to speak. Those who are in the master level act like multiple franchise owners and area developers at the same time. Plus they get to enjoy a few added perks. On top of getting what business owners below are given, they are also granted the authority to recruit other people to be their franchisee.

Master franchising puts one at a level that is almost at par with the franchisor. The only difference is that they’re still under them. But in essence, they can act in the same way as far as their recruited units are concerned.

Furthermore, the master franchisee has access to the support, business tools, and models that are available only to owners of their stature. And because they act like as major distributors, they are also eligible for multiple income streams.

Depending on the agreement signed upon by the franchisor and the master franchising owner, the latter can collect a part of the franchise fees, ongoing royalties, and margins from the purchases by their units. All of these and a whole lot more, are immediately enjoyed when one signs up for master franchising.

The Bottom Line

Without doubt, this ultimate opportunity provides the highest chances of being successful in this business. For one, you’ll handle only a few customers. All you really need to do later on, is to look after your units, support them, and provide them with all the business assistance they need. And purely because of that, you will need fewer employees and a smaller office space to run your business. And that would then mean lower overhead costs for you. Franchise owners who have stepped up to the master level always have the option to keep their stores or just focus on being the top gun.

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