Master franchises are suitable for investors with sufficient financial resources to develop a network of franchises in a specified country or region. A master franchise involves a major management role supported by the know-how and experience that come as part of a franchise package.
In general terms, these are the qualities the franchisor will be looking for in a master franchisee:
- Familiarity with the local market.
- Experience in the relevant industry (ideal, but not always essential).
- Proven financial resources. The master franchisee must have the wherewithal (either alone or with other investors) to buy the franchise rights, set up prototypes and systems, and develop the franchise business in the agreed territory.
- Proven management skills. For the most part, the master franchisee will be functioning in exactly the same way as the franchise does in its “home territory” (native country).
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