A Master franchise is an excellent opportunity for scaling an existing business into new cities, territories, regions, states and even countries. The business model itself, which was initially set up in the US, offers Master franchisors quite a lot of opportunities that are worth exploring. If you’re curious about whether you should dip your toes in the world of Master franchising and how to go about it, then keep reading below!

Table of Content
Table of Contents:

1.Master franchise advantages and disadvantages

2.How to become a Master franchise

3.Conclusion

Master franchise advantages and disadvantages

A brief summary of the pros and cons of Master franchising can be found here:

Advantages

  • Extra income and revenue: due to the fact that you’ll be scaling several sub-franchises in a given location, you’ll have more opportunities to earn income and revenue as your sub-franchisees will be paying you for using the rights to work under the franchise name.
  • Growth and expansion: it’s in the very nature of a Master franchise business to seek to grow and scale up operations and expansion is a natural progression of the business type.
  • Task delegation: as a Master franchise owner, you will be able to delegate tasks to various sub-franchisees who purchase rights to run the business in a smaller area, leaving you with more time to focus on more essential aspects of growing the business. 
  • Up control and prestige: as a Master franchise owner, you’ll also be able to exercise greater control over your sub-franchisees and with this comes an element of prestige.
  • Branding: relying on the parent brand, your success is halfway guaranteed if the brand is already well-known in the region you’re entering and this reputation is something you can use to your advantage. 
  • Proven business model: the Master franchise business model has been proven to be one that works. It is based on years of trial and error, with only the successful elements implemented while the errors have been honed in on and minimised.

Disadvantages

  • Recruitment costs: there are, of course, recruitment costs to bear as you branch out to greater areas.
  • Loss of control: as a franchise owner, you leave your brand in the hands of the Master franchisor to some extent, and this could mean a dilution of the brand identity or the provision of services in an unequal manner. 
  • No guarantee of success: much like anything in life, there is no guarantee for a Master franchise’s success. However, with hard work, time and effort put in, strategic planning and others you can overcome this hurdle. 
  • A complicated model: the Master franchise model can be a rather complicated business model with various parties involved, various legal responsibilities, and also, the various territories where the Master franchise agreement will apply.
  • Increased responsibility/legal exposure: with the abovementioned, it implies greater levels of responsibility on the part of the Master franchisor, and as a result, greater legal exposure as you’re now responsible for not just your unit, but for several units at the same time. 

How to become a Master franchise

As you start out on your journey to becoming a franchise owner, you need to decide whether you will purchase a single unit franchise or a multi unit franchise. While the former, as the name implies, refers to a single unit in a single location, the latter is about several franchise units in a wider area which are run by a single franchisor at the same time. 

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Once you’ve figured out which niche you’d like to branch out into, it’s also important to consider the Master franchise agreement you are presented with. It will set out all your duties and responsibilities, as well as what realistic expectations you can nurture over the short, medium and long term. 

In addition to the above, you’ll also need to consider the Master franchise fee structure. This is the structure in terms of which you receive royalties from the sub-franchisees, as well as the royalties which you yourself would need to pay the franchise owner. In addition to these costs is the cost of actually purchasing the license for the Master franchise as well. 

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Conclusion

Running your own Master franchise can present you with a wide range of advantages and opportunities. You not only scale to a wider location, but your ability to earn even more income improves. If you’re someone who is looking for Master franchise opportunities in the UK, considering some of the best and most well-known in the industry could be to your advantage.

One example of a partner you can sign up with is Fantastic Services. With over a decade of experience on the UK market, over 100 services in its portfolio and a truly outstanding model of supporting Master franchisees with ongoing training and support, you’ll never look back on your decision and can enjoy a brighter, more prosperous future.

  • Last update: May 25, 2022

Posted in Advice Hub