Using the master franchising concept, you can take great franchise owners and turn them into master franchisers and expand their success and yours along the way.

It is hard to say if master franchising benefits the franchising company or the franchisee more. The concept is an elegant one to be sure.  Instead of developing a small army of franchise owners, each of which operates one franchise per owner, you take the real winners in from your franchisee elite and let them operate many franchises by offering sub-franchisees that they train and run based on their vast experience and expertise. In exchange, you fork over a little bigger piece of the pie from the profits of those sub-franchises and with that exchange, you pass to the master franchising candidate a boat load of headaches, costs and risks.

The changes to the franchise agreement can be handled by your legal eagles who know the in and outs of franchise law.  It is all very legitimate and it is a beautiful way to kick your franchising program into the next level. You can continue to grow your empire through franchising but the results in terms of reduced effort, overhead and risk to the franchising company plummet even as your profits sour.

The control of risks alone should make master franchising a very sweet deal to the big bosses in your company. As much as we put a sweet spin on the business maneuver of franchising, there is always a risk.  When you sell a franchise to a new partner, you do all you can to snoop around and make sure that he or she has the right stuff to make it big running one of your operations. By try as you might, some people can’t cut it. When a franchise fails, that is terrible for the franchisee and you lose a bundle too.

Master franchising turns over the risk of opening new franchise to the master franchising guru.  You know that the partner you are signing a master franchising agreement knows his stuff because there is a track record of stunning growth and profits that you already get from that franchisee. So why not mine that huge experience and let him or her make you even big piles of money through master franchising.

Master franchising means everybody shares in a bigger pot of money.

When you bring in that candidate for master franchising to negotiate a deal with, it isn’t hard to dangle some sweet profits out there to wet his appetite.  Along with taking over the recruitment, the training, the management and the risks of handling sub-franchise, you will be able to put a nice increase in profits into that master franchising agreement.  You get to still keep raking in the big profits from the anchor franchise your master franchising candidate runs because that isn’t going away.

The change is that all of that seasoned knowledge about how to turn a franchise into a cash cow is now gets spread to man sub-franchises. Not only can that master franchising guru train his or her charges to run serious profitable outlets of your business, he or she can jump in there and fix things when they break and fine tune each sub-franchise until it is a money generating machine too.

The result is the master franchising guru gets to use his or her hard fought experience to get very rich indeed. The sub-franchise managers begin to get a taste for serious money that they can enjoy working in a tightly run franchise and you see the cash flow from the chain of operations run under the master franchising agreement explode making you huge amounts of money.  That is a win-win-win situation.