Within the world of franchising, there exists a little-known opportunity that can create millionaires, known as a Master Franchise or Regional Franchise Developer Franchise. It is simply the owning of the exclusive rights to sell or open a given number of franchises in a given protected territory.
In other words, a Master Franchisee or more accurately a Regional Franchise Developer, develops a franchise system within a protected 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 up front Franchise Fees as well as in the weekly Royalty Fee revenues that are generated from the franchised operations within that territory. The Master Franchisee pays the franchisor a fee for these rights and must provide certain services to existing franchisees within the defined territory. In building that territory, the Master Franchisee usually does not enter into agreements with the franchisees but rather facilitates the coming together of the franchisor and the franchisee. Once the franchisee has entered into the franchise agreement, the Master Franchisee may aid the franchisee in site selection, build-out, equipment acquisition, training coordination and in opening, operating and insuring quality control.
For these ongoing services the franchisor pays the Master Franchisee a split in the royalties and franchise fees earned within the territory. This can represent up to one-half or more of the revenue stream earned by the franchisor within the territory.
With owning a Master Franchise you enjoy all the benefits of being a franchisor without the burden of having to develop a concept from scratch. They have a proven track record, brand name, and a successful operating system. You basically become their partner in a territory. The franchisor provides you with valuable support, latest innovations and business experience.