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Master Franchisee 2017-04-29

Why Master Franchising rules the roost?

Master franchising is a strong form of franchisor-franchisee relationship in which the Master Franchisee gets full control of a particular territory.

By Feature Writer
Why Master Franchising rules the roost?

There is no doubt that there are a dozen advantages attached with Master Franchising that makes it so appealing to the franchisors across the globe. What is it that makes master franchising the most successful move and is it the best approach in franchising? We tell you here…

Master franchising is a strong form of franchisor-franchisee relationship in which the Master Franchisee gets full control of a particular territory. It can be said that the Master Franchisee becomes the king of that territory and he can recruit and train many franchisees under him. A Master Franchisee owns exclusive rights to sell a given number of franchises in a given protected territory. The best part of being a Master franchisee is that the person is free from the anxiety of developing and nurturing a brand from scratch.

Widely used for international moves
Getting into a particular country via Master franchisee can be the smoothest move for any brand. A Master Franchisee of that particular country not only knows the region very well but it is also a sigh of relief for the brand that it can depend on someone for those local moves. A brand saves much of its time via master franchises as finding right people in different countries is a tough job. It is a win-win situation for both Master franchisee and the franchisor. Master franchisee gets to connect with a known brand and the franchisor takes advantage of the Master Franchisee's expertise. So, Master Franchising is the favourite move for brands in franchising. Milkshakes brand Keventers is expanding fast pan-India via franchise partners. On Master Franchising, Sohrab Sitaram, CEO and Director of Keventers tell us: ‘Master Franchising is great for a business. India is a diverse country and demographics and preferences change and each state is treated separately. If you bring on board a local person they understand the flavours and are masters of that territory. It helps a business grow and expand and works well for strategy and planning. If a brand can bring on a local partner, it's the local intellect that is favourable and helps with business expansion. They handle the operations, royalty and overall it's easier for a brand to work with one person instead of them having to deal with permissions etc. It's definitely beneficial and helps a business grow.’

Benefits of Master franchising

  • Acquire the non performers: A Master Franchisee can acquire the non performing outlets and make them profitable with his expertise and financial aids.
  • More confidence: A Master Franchisee definitely develops more confidence as compared to other smaller franchisees for any brand. A Master franchisee can do decision making and guide the partners under him.
  • Royalties: Franchisor pays the Master Franchisee the royalties and franchise fees earned within the territory.
  • Get better locations: Since a Master franchisee has better local connects; he can always get better and prime locations for opening his outlets.
  • Financing Franchisees: A Master franchisee can also finance his franchisees for better business in his territory.
  • Less office space:A Master franchisee can work from anywhere as once after opening his outlets and running it successfully, all he has to do is search for right partners under him.
  • Valuable region: With opening of more stores in the region, the value of a Master franchisee’s business automatically increases. With opening of more outlets by small franchisees, a Master franchisee can become more powerful.

Though it sounds easy but being a Master franchise for any brand- big or small requires a lot of commitment and patience. The person must have great management skills with a bag full of sales, marketing, and operational expertise. Since franchisees and people under him are all dependent on a territory franchise, so the job becomes tougher. Frozen Desserts brand, Spanish Delights is in collaboration with a decade old Spanish Brand ‘Deleite Espana’, having its presence in over 30 countries in Europe and Middle-East. Sheershak Agarwal, Vice President of the brand comments: ‘Master franchising is the easiest and fastest route to expand any well-known Brand. It is easier for a brand to deal with few area-wise Master Franchise owners rather than dealing with numerous franchise owners. There is uniformity in operations and lesser risk of bad customer experience because of unmanaged outlets. Also, the hassle of managing multiple spaces is passed on to the Master franchise owner.

UK based luxury salon brand, Truefitt & Hill has around 12 + outlets in India. It’s Director, Istayak Ansari says: ‘Any Master Franchise should be ready with a proper plan before taking the brand to Indian market. A proper homework is vital.’ So, After all it is the teamwork that makes a winning proposition for any brand. So, a Master Franchisee always has to be on his toes to serve the best to his patrons, franchisees, staff and the brand above him. It is the overall excellence, expertise and patience with great local contacts that makes the best endearing Master Franchisees.

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