Master Franchise Opportunities
We are currently offering a limited amount of Master Franchises and Master Franchise Partnership Opportunities from franchisors that we feel are exceptional franchise companies based on our investment criteria.
What is a Master Franchise?
Within the world of franchising, there exists a little-known opportunity that is known as a Master Franchise or Area Representative Franchise. It is simply owning of the rights to develop a franchise system within a territory. This territory can be a metropolitan area, an entire state, several states, or even a country. The Master Franchisee assists the franchise company in developing the territory in exchange for a share in the royalty revenues (percentage of gross revenue from each franchise) and franchise fees that are generated from franchises within that territory. This amount is typically half of each.
Example: The Master Franchisee receives 50% of each franchise fee and 50% of the royalty income.
Assuming a franchise fee of $45,000 per unit for each unit opened in the territory the Master Franchisee would receive $22,500 (50% of the $45,000 franchise fee).
If each unit in the territory has an average yearly gross sales volume of $1,000,000 and a royalty of 6% of their gross sales the royalty paid by each franchise unit would be $60,000 per year. The Master Franchisee would receive 50% of this amount which is $30,000 per unit per year.
If 10 to 100 units opened in the territory, the royalty income could be $300,000 to $3,000,000 per year.
In addition, the Master Franchisee could receive a franchise fee income of $225,000 to $2,250,000 depending on how many franchises are sold in the Master Franchise territory.
With a Master Franchise, you could receive franchise fees and royalties from 10-100 franchises or more with each one possibly paying you thousands or even tens of thousands per year and building a substantial long-term income for you and your heirs.
(The example above is for explanation purposes only and not a guarantee. Franchise fees and royalties vary depending on the franchise company. Franchise fees typically range from $30,000 – $60,000 and royalties are a percentage of the gross revenue, mostly in the range of 5% to 7%).
Absentee Master Franchise investment opportunities are also available and managed by experienced franchise executives.