Are master franchisees which are employed by the franchise companies paid out normal, fixed salary or do they just accept commissions? So how exactly does this work? What are some of the positives and negatives of being a master franchisee, as you see them? Any kind of tips you’ve are appreciated.
A master franchise is commonly a person that goes into an agreement with the franchise company in order to sell and service individual franchisees in a large and well-defined area. This is usually a metropolitan or statewide territory.
The master generally receives a cut of all the money that flows from the individual franchisees to the main franchise company — quite often around half. This could include initial franchise fees, ongoing royalty fees, training fees, real estate or build-out assistance fees.
The master isn’t an employee of the franchise company so there’s no salary or some other set income. They’re paid out strictly as they produce profits for the main company.
A big difference between being an franchise individual and a master franchisee is in defining who your customer is. For the franchisee, the customer is the consumer that buys the product or service from the business.
For the master, the customer is the individual franchisee. The master spends his or her time focused on creating success for the individual franchisees so the business can grow through their increased volumes.