master franchises

What are Multi and Master Unit franchises?

One significant development of franchising is the growth of multi-unit franchises and master franchises licences. For franchisees, both of these are hugely important for growing their franchises. But what exactly are they?

Multi-Unit Franchises

Typically, franchisors only offer one franchise branch in a specific territory. Whilst this helps reduce the threat from other franchisees, it can limit your growth.

Multi-Unit Franchises, as their title suggests, allow you as the franchisee to operate more than one outlet in a certain area. This will allow you to expand your customer base and gives you the potential to earn more from your franchise.

With the additional branches come additional responsibilities. You may have to manage more staff and put some money towards start-up costs. You will also have to demonstrate to your franchisor that you have the capacity to manage multiple units, but if you are already successfully running one branch, this should not be a problem.

There may also be a chance for you to purchase existing branches of your franchise, which you may be able to get at a discounted price. This is also where research is very important. As the branch is a business in its own right, you will have the chance to look at the records. If the franchise has changed ownership on multiple occasions, this could be a warning sign.

Master-Unit Licence

Though the Master-Unit Licence is a sizable investment, it can bring great rewards. With the licence, you can be in control of all the franchisees operating within a specific territory and claim a portion of the fee that they pay to the franchisor. Given that territories can sometimes be as large as whole countries, this can represent a significant income.

Again, careful research is paramount here. You need to ensure that there is a strong consumer need for your franchise and that you have the right amount of franchisees to maximise the potential of your territory. It is strongly recommended that you speak to a solicitor when you have the franchise agreement and that you can step in to help run a branch if required.

What is the next step?

If you are looking to take your franchise career up to the next level, speak to your franchisor about the possibility of Multi-Unit opportunities and the Master-Unit Licence. When it comes to the former, consider how well-equipped the franchisor is to manage a number of branches in one area. In addition, speak to a solicitor if you are unsure about any areas of these opportunities.

Franchising works across a variety of sectors so to make progress with your franchise journey, take a look at the franchises available here.

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Sandy Purewal

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