When faced with the prospect of expanding a franchise into a new territory, many franchisors employ the model of master franchising. As opposed to direct franchising (where one franchisee is granted the right to open one business) or area development (where a franchisee is granted the right to open several businesses across a particular region), master franchising contemplates something larger.
A master franchisee is a bit of a hybrid entity, because it acts as a franchisee in its operation of one or several businesses, but is also granted the right to be a franchisor and sub-franchise to franchisees across a specified region, such as a province, state or country.
However, the road to successful master franchising is fraught with potential pitfalls of which both franchisors and prospective master franchisees should be aware. Read more.
Home Franchise Site Master Franchising Relies On Having The Right Partner