What is a Master Franchise?
Another aspect of franchising which is sometimes confused with multi-level marketing is what is known as a “Master Franchise”. This is used where the franchisors, for their own reasons, decide to allow another party to take over the control of running a franchise in a particular area or country that can create income for them by setting up other franchisees and obtaining the initial franchise fees as well as receiving ongoing royalties.
An overseas franchise may decide to come into the USA and decide to set up a master franchisee in the North Island and another in the South Island. These franchisees would then develop their own franchisees under them to cover the areas concerned. The master franchisee would have full charge of the area allocated and no one else can come into that area with the franchises products or services.
How to Expand a Master Franchise
If you are a business with a successful product and you wish to develop it under a franchise system then one of the ways th...
Membership required (FREE)
The rest of this article is freely available to StartRunGrow members.
Not a member? Join Here - Its FREE!