Master Franchise / Area Representative Advantage

Q: What is an Area Representative or Master Franchisee?
A: A little known Secret in Franchising about making Money ...

Imagine sharing in the royalty income generated by all of the Subway Sandwiches' or Domino's Pizza's operating within your city. A Master Franchisee shares in the income generated from the units operating within his/her territory.

A Master Franchisee is someone in the unique position of owning the rights to sell business franchises in a given area. This territory can be a major metropolitan area, an entire city or in some cases the whole State. The Master Franchisee rarely works in the day-to-day operations of the unit; rather your job is primarily a business consultant to the franchisees.

How does this work?

A Master Franchisee buys the rights to market & sell franchises within a specific territory for a Franchised Company. Not every franchisor offers Master Franchising opportunities however; those that do are utilizing this strategy to encourage more rapid growth. This could mean huge profit opportunities for you.

Prestigious:

In addition to selling franchises, the Master assumes the exciting role of business consultant to the franchisees to help them succeed. This is usually in the form of providing training, sales support and business development strategies. Most Master Franchisees find this to be the most satisfying part of the job.

Financial Freedoms:

Unlike other business systems, Master Franchisees truly have the ability of turning their dreams of financial freedom into reality.

Here is a typical example:

You purchase a territory from an automotive franchisor or a computer franchisor for a certain amount of money (your investment). A typical territory can cost between $50,000 and $500,000. Your agreement with the Franchisor may state that you will receive 50% of the franchise fee and 50% of the royalty income, for each unit sold or opened within your territory. Let's assume that the franchise fee is $25,000 per unit and the royalty is 6%. That means that for each unit opened in your territory, you will receive $12,500 (50% of the $25,000 franchise fee). Let's go one step further; assume that each unit opened will have a gross yearly sales volume of $1,000,000. Each unit is then required pay a royalty of 6% of their gross sales, equally $60,000 per year. You as the Master Franchisee would then receive 50% of this amount or $30,000 per unit, per year!