Why Should I Invest in a Master Franchise?

Increased Revenue Potential

As a Master franchisee your ways of generating income are expanded over that of a normal franchise. With a normal franchise, you are generally offering the product or service directly to the end-use customer such as in a retail store. With a Master franchise, you can generate income through your own stores, if you wish, with a significantly reduced royalty and franchise fee. In addition you can generate sales through:

• Franchise fees-When you sell a franchise, you receive a franchise fee. Most franchise fees are between $20,000 to $30,000 and in a typical Master franchise program, you earn a portion of this fee - usually in the neighborhood of 50%!
• Ongoing royalties-This is the ultimate income source. Once you help set up the franchise, you receive royalty income or annuity type income for the rest of the life of that franchise. Imagine receiving 2% to 5% of your franchisee's volume every month for many years.
• Products or additional services-Often products or additional services needed by the franchisees are sold in the franchisee's outlet, which can bring excellent additional income.
• Real estate-If real estate is involved with the franchisee's location, often the master can become involved in development of sites and receive other types of real estate related income. This type of income is usually optional for the Master franchisee.

A Prestigious Business

The prestige of owning a Master franchise and controlling an entire area can offer you an opportunity to feel great satisfaction. Your main job will be to act as a business consultant to your franchisees and help them succeed in their own business. You will be associated with the elite brand name of the franchise, as the main developer of an area, even though it will be your franchisees investing their money. You don't need to know anything about the industry. You'll receive initial training and then ongoing training from the corporate office.

A Better Quality of Life

Master franchisees own and enjoy a quality-of-life business. Here are some key characteristics about the typical Master franchise:

• Very few customers: Your customers are your franchisees. You help support a small number of franchisees who typically own several franchise units each.
• Very few employees: Typically you will operate a Master franchise by yourself and then expand to have an administrative assistant, a trainer or other support person and a franchise sales person. As you grow bigger, you add more of these positions into your staff and perhaps a general manager to run the whole operation and back away almost completely if desired. We have found that many Master franchisees after having worked for three to seven years can retire and live off of an extremely good income and spend one or two days a month in the office.
• Very little office space: Many Master franchises can get started out of a home office. Once you have enough franchisees in place then you can expand to an outside office.
• You can build equity in the business at a much faster rate than a normal business. Once you sell a few franchises or open your own stores, you increase the value of your business significantly. Not only do you have an existing business with cash flow, but you have additional franchise opportunities to sell, which gives the Master franchise a higher value. Instead of the typical 1.8 to 2.8 times earnings of a normal business, you could average between 4 to 9 times earnings with a Master franchise.
• Low Overhead: Usually you don't have to jump into the business with a large office, staff and other overhead expenses. You can expand as you go.
• You have the option of setting up your own franchises at reduced rates: As you open your own outlets you create another asset of value. You now have your Master franchise with a specific value and also your own franchise with its value. As the value of your franchise increases, it increases the value of your Master franchise. They are separate assets you can sell when you wish.
• You own an exclusive territory: Only you and your designated franchisees will be allowed to develop franchises in your territory.
• More freedoms exist in a Master franchise than a normal franchise: You help set the standards of the franchise in your area.
• You stay up-to-date on the latest technology: Being part of a larger franchise system allows the best ideas to flow into the corporate office and then into the field. You'll have your own research and development department built right in.
• You don't need experience in the specific industry: You will receive industry specific training and support from the corporate office.
• It can be started part-time and then you can move to full-time as required by the business you bring on.
• And best of all, it is a franchise! Franchises, on average, have a 92% success rate, according to the Sourcebook of Franchise Opportunities. Master franchises (often referred to as regional development franchises) typically have an even higher success rate than the normal franchise. All you need to do is find the right Master franchise for you. Master franchising is the best kept secret in business today… for the right person.

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