Most people are familiar with the term “franchise owner.” As a franchise owner, you purchase a business that is part of a chain – for example, you might purchase a Chick-Fil-A. You will use the same name, trademark, products and services. And, in return, you also now become a business owner and have access to all of the training and assistance that the company headquarters offers their franchisees. This is a great way for those wanting to become a business owner to do so without having to create an entirely new company and business plan.

But, working in the franchise world can go even further than just being a franchise owner and owning only one franchise – there is also something called a Master Franchise Owner. So, if you are looking for an opportunity to be involved in the franchising industry, but in a more hands-on way than owning your own franchise, this is a great opportunity for you.

What is a Master Franchise Owner?

Master franchising is a form of franchisor-franchisee relationship. It is based more around the management and promotion of franchises for potential and current franchise owners.

A Master Franchise owner is someone who enters into the contract with the franchise company and is sold control over the franchising activities in a specific area. They are responsible for helping the franchise company expand by selling and servicing each individual franchise in a large and typically, well-defined area – usually a metropolitan or statewide territory.

However, the master franchise owner is not an employee of the franchise company.

What Are the Tasks of a Master Franchise Owner?

The main goal of a Master Franchise owner is often to help the franchise operator expand more rapidly in the specific territory in which they service. This is frequently done through recruiting individual franchisees. When determining if the goals and tasks of a Master Franchise owner are right for you, consider one major difference – who the customer is for each person. For the franchisee, the customer is the consumer that buys the product they offer, but for the Master Franchise owner, the customer is each individual franchisee.

How Do Master Franchise Owners Get Paid?

Typically, the Master Franchise owner will get a portion of all the money that flows from each individual franchisee in their designated territory to the main franchise company. And, that portion is typically around half of the influx of money. This influx of money could include training fees, build-out assistance fees, initial franchise fees, ongoing royalty fees, or real estate fees.

But, because the Master Franchise owner is not an employee of the franchise company, there is no fixed income or salary. It is strictly a revenue-based position based on the revenue that’s produced for the main company.

Conclusion

Essentially, the Master Franchise owner runs two different businesses – they have one “business” that helps operate each individual franchise and then they have another “business” that helps the franchise company expand. While each task requires a different set of skills and knowledge, if this is a career you are considering, having sales and management experience is a huge benefit for a prospective Master Franchise owner.

Before making the decision to commit as a Master Franchise owner to a specific franchise, here are a few additional tips for how to ensure you end up in the right place:

  • Know your responsibilities. Generally, you will be responsible for recruiting, supporting, and providing training. But you should always inquire about what each individual franchise company expects.
  • Do your research. Never judge a book by its cover – always look up the facts first.
  • Take a road trip. One of the best ways to get a feel for the world you are about to step into is to take a visit to a few of the franchises in the area you are considering working for.
  • Talk to other Master Franchise owners. Aside from doing your own research and site visits, the best way to get true insight into the position is to ask those who have come before you. They might also be able to provide tips, tricks, and even some references who have helped shape their career.

A Master Franchise owner is a great and rewarding position for someone looking to get into the franchise world in another way – as opposed to being a single franchise owner.

La Mancha Sims is Managing Director and Founding Partner of Triton Business Group, Inc., a business funding consulting firm located in Decatur, Georgia. La Mancha is a former Naval Officer who has over fifteen years of experience in franchise and commercial finance, specializing in assisting entrepreneurs who want to enter the franchise industry as owners or consultants/advisors. You can reach La Mancha at 770-249-2357.