Business for Sale Overview:
What Is A Master Franchise? Within the world of franchising, there exists a little-known opportunity that has created franchise fortunes, known as a Master Franchise or Area Representative Franchise. It is simply owning the rights to a franchise territory. This territory can be a metropolitan area, an entire state or several states. The Master Franchisee assists the parent franchise company in the sales and development of the territory in exchange for a share in the royalty revenues and franchise fees from every unit in the territory. This amount is typically half of each. Example: The Master Franchisee receives 50% of each franchise fee and 50% of the royalty income. Let's assume that the franchise fee is $30,000 per unit and the royalty each unit pays is 6% of their gross sales. That means for each unit opened in your territory the Master Franchisee would receive $15,000 (50% of the $30,000 franchise fee). Let's also assume that each unit in the territory has an average yearly gross sales volume of $1,000,000. Each unit would pay a royalty of 6% of their gross sales, which is $60,000 per year. The Master Franchisee would receive 50% of this amount which is $30,000 per unit per year. This is the ultimate franchise investment opportunity. It is a solid, low risk investment that can provide a substantial lifetime income for the investor and their heirs. If 10 to 100 units opened in the territory, the royalty income would be $300,000 to $3,000,000 per year. In addition they would have received an additional franchise fee income of $150,000 to $1,500,000. This yearly income can last for perpetuity!
For more information regarding this listing please contact us by completing the "Contact the Seller" form to the left. We look forward to hearing from you.
Reason for Selling:
Being sold by the Franchise
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is a homebased business opportunity.
- This is a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.
Resources: