What is a master franchise and why would I want one?
Master franchises are where the franchisor sells territories to the master franchisee in exchange for future royalties and a cut of franchise fees. Master franchising opportunities may be a home based business because the master franchisee typically provides only support and marketing. Master franchises can have a significant up front cost; however there are many situations, for example in an internet marketing franchise, where it is a low cash investment.
Wealth generated from master franchising opportunities can be quite significant. Where the master franchisee has obtained the right territories with a winning concept, the royalties can essentially be a lifetime annuity. However, not all master franchising opportunities are created equal. For example in those cases where it is not a low cash investment, and the concept doesn’t grow, the master franchisee can see little or no return.
Browse our site to see a premier selection of master franchising opportunities. Think about having a home based business, with a low cash investment that pays royalties essentially for life! If you are able to provide the required support and territories in your area are available, master franchises may be the way to go. Check out WSI for a leading internet marketing franchise that offers master franchises.
Generally, master franchises are part investment, part business operations. The master franchisee essentially places a bet that the underlying franchisor brand will increase in value as the franchise brand grows and that ROI, through both royalties and equity appreciation, will far outstrip the initial low cash investment.
Some master franchising opportunities require the master franchisee to own and operate a location within the territories, while still a home based business, you would need to spend the additional investment for a location. Other master franchises focus more on the support provided to the franchisees within the territories.
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