If you want to take the franchise business to the next level then the master franchisee might be the right option. You have to hire a qualified and knowledgeable attorney who handles franchise related business shares. There are many franchisors who are at some point of time in their business, consider the master franchising. It can create unique opportunities and new profit streams. However, master franchising is not suitable for all franchise arrangements and particular consideration as well as skillful advice should always be asked prior to starting on such an important decision.
Everyone wants to know that how the franchisees associate with his/her franchisor. There are many franchises choose one of two methods for giving sales and support assistance to franchisees which are straight by the franchise company to the individual franchisees which are known as direct franchising or via a master franchisee. It is essentially a contract that provides you the authority and power to control all the actions of another Franchise in your area of the special brand. In other words, the opportunity provides power in your hand to have the whole state in your palm. This saying ideally represents the role and power of Master Franchise.
The master franchisee usually pays the franchise company a meaningful initial fee for the licenses to expand the area and then keeps most or all the initial fees and authority fees paid over time by the individual franchisees in the area. It is difficult for a Franchisor to know the functionalities, laws, geography, the demography and other variations between the different parts of the country. So, it is essential to hire a franchise attorney that will help you to understand all about and make your process easier and reliable. Hence, when they provide a master franchisee, they give away such tasks and concentrate on other key features of the business.