Franchise Business Opportunities as a Master Franchisee

Sarah Stowe| Editor | Franchising magazine and www.franchise.net.au 

Becoming a master franchisee can allow you to play a key role in developing a brand across a region or country and also give you a great opportunity to be financially successful. But being a Master also presents a unique set of challenges along the way. Sarah Stowe shares her insight into whether becoming a master franchisee is right for you.

Look in the mirror. Do you see someone with ambition, someone who can help drive others to build their business? because if you have your sights set on becoming a master franchisee you'll need plenty of gumption.

Different types of franchise business opportunities

Franchising offers many routes to success, the most obvious path being that of the franchisee with one business to run, whether that’s a one-man van operation or a food outlet with a busy staffing schedule. There is also the increasingly popular choice of building a mini empire as a multi-unit franchisee, most often with a number of outlets within one network, but sometimes across a variety of franchise brands.

What does a master franchisee do?

As a master franchisee you’ll have to take on some of the roles of the franchisor, such as recruiting other franchisees within your designated territory. You will need to be on hand to help them build their business, usually while keeping a steady eye on your own operation - which has served as the launch pad for the brand in that area.

It’s a bit like being piggy-in-the-middle. You are not on the payroll as a member of management with an action plan to build up the territories. But neither are you solely focused on driving customers to your own business.

Challenges of being a master franchisee

You will have targets to reach to ensure the franchise network is growing at the expected rate and be responsible for ensuring compliance among franchisees – sometimes a very difficult situation.

Some franchisees can find themselves unsure as to their responsibilities, and expect the franchisor to take more control of their business than is realistic, or desirable. The master franchisee has to share in the frustrations of both the franchisee and the franchisor in these cases, and it spells trouble when a master franchisee has the tendency to push everything back to the franchisor. Master franchisee is not a role in which to learn either business skills or people management!

"There is also the increasingly popular choice of building a mini empire as a multi-unit franchisee, most often with a number of outlets within one network, but sometimes across a variety of franchise brands"

The importance of trust

"There is also the increasingly popular choice of building a mini empire as a multi-unit franchisee, most often with a number of outlets within one network, but sometimes across a variety of franchise brands" 
Sarah Stowe

As with any franchisee/franchisor relationship, in reviewing franchise business opportunities it is important to have clarity from the beginning about mutual expectations and goals, as well as trust and transparency between the parties. If the goals of the franchisor and master franchisee are not in alignment, it is hard to succeed as a master franchisee. In fact, as a master franchisee the need for this type of compatibility is probably even stronger.

Above all, to succeed with franchise business opportunities as a master franchisee you will need to have confidence in your franchisor and their ability to support the franchise network, and to deliver on their promises. After all, you’ll be on the frontline! While a good master franchisee can become very financially successful and an influential part of a franchise network, the role demands vision, attention to detail, well-honed business skills and the ability to deal with people. Ask yourself: Is this you?