What Are The Benefits Of Master Franchising?

The Economic Benefits & Advantages of Master Franchising & Franchise Opportunities:

Although master franchising agreements will vary in scope and complexity with each individual franchisor, in general the economic benefits of being a Master franchisee or Sub-franchisor are significant, and ultimately can be very lucrative. Some of the more universal and distinctive income generating benefits of owning a Master Franchise territory can include: 

Franchise Fees - Depending upon the agreement, As a Master Franchisee when you sell or award a franchise in your territory you will receive any where from 50% or more of the stated franchising fee. On average most franchise fees typically range from $20,000 to $30,000 for a single unit.

Residual Royalty Income- As a Master franchisee you will also generally be entitled to receive a percentage (typically 50%) of the monthly royalty income generated by each franchise unit in your territory. With the average franchise royalty fee ranging from anywhere between 3-7% of gross monthly sales, these fees can amount to an ever increasing source of residual income for the Master franchisee. For example if you sell or award 100 franchise units in your designated territory that were on average grossing $40,000 per month with a 6% royalty fee- of which 3% would flow to you- your monthly residual income would be $120,000, or $1,444,000 a year!

Additional Fees And Services- In many cases another source of additional (and on-going) residual income for the master franchisee can be generated through the sales of products and services to the franchisees in your territory.

More Resources:

List of available master Franchises for sale

Master Franchises by state directory