When to Consider to Growth Through Master Franchises?
If you are a business owner expanding your company through franchising, Growing your franchise business is what it’s all about, right? On the franchise buyer side, you want to see that your franchise investment can scale and expand throughout your market with the assistance of unit franchisees. You want to see success in your own location and business, but also in the franchisees under your brand name. What happens when you start growing faster than you can keep up with? The Master franchise model is what you need to investigate. This is a great opportunity to help you handle the rapid growth and expansion of your brand without running yourself into the ground. Take a look at what this master franchise opportunity is and how you can use it to keep your brand growing by leaps and bounds.
What is a Master Franchise?
In basic terms, a master franchise is where you as the brand owner give the opportunity for your strong franchisees to sell franchises of their own in a specific region or area that they are in. They can do the work and help the franchise grow while you’re still getting a portion of the profits. This gives you great partners that are strong and steady in their growth and understanding of your brand. It also helps you to grow continuously in the regions you would like to without you having to pursue franchisees there. Master Franchises if managed correctly carry enormous ability to scale and grow. Several brands have used master franchise expansion models to expand quickly and effectively including Subway, European Wax Center and Verizon Wireless franchises used master franchising to expand very quickly and effectively. Several new brands are using master franchising extremely effectively, Clubstore Outlets, Medex Medical Transporation and others have found great master franchisees early on in their franchise expansion model.
What are the Benefits?
First off you can grow your franchise business without having to do all the extra legwork it can take. Rapid growth means you need business partners that understand your business and can offer that extra support. This means you can grow your franchise opportunity in places you’ve never been or might never reach because of your master franchise plan.
Second, you can have your franchisees that are strong partners also training and marketing your brand in the region. It takes a huge load off of you at the time so you can easily get work done in your own area. They can offer training to new franchise locations, public relations support, marketing support and being there for the grand opening. They can basically be you for the brand when you can’t be there.
What’s in it for the Franchisee?
The franchise owner will gain many benefits from this master franchise option. They will earn franchise fees and royalties that will be split between them and you. That way you are both getting profits from the new location. They become a strong partner in the brand and are more dedicated to the franchise than others may be. They get valuable owner experience and earn the perks of being a part of a bigger profitable business. They can also help and give support to the other franchises around them so that they can make a difference in their own community.
The master franchise opportunity is a great way for you to handle the rapid growth that your brand may be experiencing. You can easily have the support you need by allowing your strong, valuable franchise owners share the marketing responsibilities, training, and getting the word out for others to join in. This is a great way to go if you’re interested in growing your brand even more.
For more information on how to sell Master Franchises of your business or whether to invest in a Master Franchise, contact us: