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What Are
The Benefits Of Master Franchising?
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Economic
Benefits of Master franchising:
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:
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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 franchise fee. On average most franchise fees
typically range from $20,000 to $30,000 for a single unit.
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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!
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Additional Fees And Services-
In many cases another source of additional (and on-going) income for
the master franchisee can be generated through the sales of products
and services to the franchisees in your territory.
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