Depending on the Growth strategy of a Franchisor different programs or formats for franchising, ranging from single unit franchises to 'Master' or 'Area Development franchises' can be used to scale. Oakscale works with our franchisor clients to determine which formats are most suitable for growth. For individuals pursuing a franchise opportunity, Oakscale will guide you through the different options available to find a franchise opportunity that suits your personal goals, requirements and finances.
Area Development Franchise Program
WHAT IS an AREA DEVELOPMENT OR MASTER FRANCHISE?
An Area Developer or Master Franchisee is a type of Multi-Unit Franchisee who also serves as a ‘sub-franchisor’. Typically, a Master Franchisee will purchase the rights to an exclusive territory (usually a major market, state, or country), Develop a handful of units on their own, and then sell portions of their territory to new Sub-franchisees. Depending on the agreement with the Franchisor, a Master Franchisee will typically split the franchise fee and ongoing royalties with the franchisor in exchange for managing some of the support and training responsibilities in their territory.
BENEFITS OF BEING A MASTER FRANCHISEE
There is significant upside and financial gain to owning an exclusive Franchise territory. This is further compounded by sharing in the Royalty stream and Development Fees as a Master Franchisee.
Why Brands Master Franchise.
The Master Franchise model allows for the allocation of franchise recruitment and support to experienced representatives who can be more familiar with the territory than the franchisor leading to greatly accelerated growth of a franchise system.