What is a Master Franchise Opportunity?
Nick Strong, MD - Select Your Franchise
The term ‘Master Franchise’ is commonly used in the franchise industry and is generally used to describe a franchise business that is responsible for recruiting, and managing, a group of franchisees within a specified area. Probably the easiest way to understand the concept is to think of it in a business management 3 tiered concept:
- Franchisor = The Boss, MD or CEO
- Master Franchisees = Department Managers
- Franchisees = Project Managers
The two most common types of Master Franchises are:-
National Master Franchise
The reason a franchisor might look to set up a National Master Franchise is where they take their franchise opportunity into a country where they currently have no presence. The National Master Franchisee will be responsible for recruiting franchisees to run the franchise businesses in their localities across the country. The franchisor is responsible for training the master franchisee in how to replicate the proven system and work with them on any adjustments required.
Regional Master Franchise
A Regional Master franchisee will normally be responsible for recruiting and managing franchisees within a specific region that falls within a country. This could be where the country is very large or where there are a large number of potential franchisee outlets available within a country. Having a number of regional master franchisees can help to accelerate the development of the brand in a new market against a single master franchisee. This is because there will be a number of operatives advancing in recruitment and development simultaneously. It can therefore make sense to have multiple regional master franchisees who are responsible to recruit, and look after, their franchisees in their region.
Is a Master Franchise for me?
Master Franchises are most suited to successful business people, who have experience in management, have significant capital to invest (£100,000+) and would enjoy bringing a new venture or concept to market in a country or region where it hasn’t previously existed. This can obviously be a challenge and requires determination as well as great networking and sales skills.
Many successful brands entered the UK via the franchise route including:
- McDonalds
- Subway
- Franchise Source
- Drain Doctor
- ActionCoach
- 1st Choice Business Brokers
- Kall Kwik and Prontaprint
If you think a Master Franchise might be right for you then you can begin by researching some of the master franchise opportunities that are available online.
Tags: franchise development, franchise investment, franchise opportunities, franchises, master franchise, nick strong
Considering Franchising into the UK or Europe?
If you are an established international franchisor looking to break into the European market, the challenge is how to enter a market that you are not fully familiar with. In order to successful bring your franchise system into the UK or Europe you will need a good understanding of the business culture together with a good knowledge of your target market in the country in question.
The Master Franchise Investment Conference, taking place at the upcoming Franchise Show at ExCeL in London on the 18-19 February, can help to get you a few steps further along in your research, meet potential investors and find out more information from industry professionals on launching your franchise brand into the UK or Europe.
The conference seminars will be hosted by The International Franchising Centre who have years of experience in helping International franchise brands establish themselves in the UK and European markets. Together with the chance to network with potential investors makes this event an important date on the calendar for any franchisor looking to export their franchise into the UK or Europe.
For more information or to book your place
Phone now on +44 (0)1904 561598
Email info@theinternationalfranchisingcentre.com
Is a Franchise Business a Safe Investment?
Joel Caws - Technical Director, Select Your Franchise
Investing can be a great way of putting spare finance to work in order to make more. There are plenty of ways to invest money from simply placing it in a high interest bank account or investing into a business venture.
Generally, the higher the risk, the greater the reward or loss. When you place an investment into a savings account you know you money will be safe, however the return you will get on the investment is typically low. It’s also linked closely to the interest rates at that point in time, so when rates go down, your return on your investment will also be reduced.
Some people choose to invest in stocks and shares which is a higher risk activity. The returns can be high for those who have taken the time to understand the way company stocks and shares move, but for those who are uninformed it can be a fast way to lose your money.
Property is another popular investment option with a fairly solid track record. Although markets can dip up and down in the short term, they tend to rise steadily in the long term so investing money in property might realise a return if you are prepared to wait for it.
Investing in a business is also a popular option. There are several ways to do this by either starting up a new business or buying an existing one that is already trading.
Choosing a franchise business may help to improve the success rate further as a franchise is based upon a proven system. Many franchises can be run as management franchises which are perfect for those who want to invest but not get caught up in the actual day-to-day operation of the franchise business. By recruiting staff to run the business, you can effectively sit back and manage the business without getting your hands dirty.
There are also franchise resales which are franchise businesses that are already setup and have been trading for some time. Choosing a franchise resale can further reduce risk as there will be a trading history to look over before making a decision to invest.
No investment is without risk of some kind, however a franchise business has the added backing of a proven business formula and training and support. Generally the success rate is good with around 9 out of 10 franchisees in any given year turning a profit*. If you do choose to invest in a business or franchise option, one thing is for sure: the success of the venture (and the return on your invested finance) will be measured by your commitment, hard work and dedication. Without a determined and committed approach, any business will likely fail.
(* figures from by BFA/Natwest annual franchise surveys)
Tags: business, franchise, franchise investment, investment, joel caws
