The Master Franchising Model

asked about 4 years ago

Master franchising is where the business owner, or master franchisor, expands through using a master franchisee. This master franchisee takes over the responsibility of opening further units within a given territory, which may cover an entire country. The master franchisee is responsible for recruiting franchisees, training, support and ongoing development of future units.

Under this franchising method, the master franchisee also becomes a franchisor over his or her given territory.

Master franchising is a popular method of expanding, especially among business owners looking to expand internationally, into countries they may not know the culture, language or business environment in any great depth.

The Importance of the Master Franchisee

The master franchisee, whose aim is to meet targets and become franchisor of units within his or her territory, plays an important role in the success of a business expanding their brand into a foreign market.

“An experienced master franchisee who has local market knowledge, business development experience and a keen drive to replicate a proven business model is the key to successful expansion globally,” says Derek Cafferata, CEO of franchising experts All State Franchise Finders. “When we work with U.S.-based companies looking to expand, this is probably the most important aspect we focus on with our franchise clients.”

Master franchising, while sometimes used domestically in the U.S. is definitely the best way to launch into the majority of western European countries, in particular, Italy and Spain.

Franchising in Italy

According to Derek Cafferata, master franchising is by far the most common method of foreign franchising into Italy as opposed to direct franchising or joint ventures, which are not very common at all.Italy’s economy is the third-largest in Europe and it has a world ranking of eighth-largest by nominal GDP. The Italian Government has worked hard to attract foreign investment and there are a number of business incentives that continue to attract U.S. franchise brands to Italian shores.

Franchising in Spain

Franchising in Spain is also predominantly carried out through the master franchising model. While Spain went through some difficult times during the Global Financial Crisis, the country’s economy has shown continued and sustained growth in the franchise industry over the past several years. And economists estimate growth to continue upward in the same trend.

Spain is very familiar with the franchise concept. Total sales generated from franchising units reported having totalled $29.9 billion in 2016. When we compare this to the U.S. total of $29.4 billion, it is easy to see why many consider Spain a great location to further a franchise brand.

The Spanish Government continues to focus on franchising as a positive effect on the country’s economy, including the involvement of foreign investment in the franchising sector.

Franchising Experts: All State Franchise Finders

All State Franchise Finders are the franchising experts when it comes to both domestic franchising in the U.S. and franchising across the globe.

With more than 30 years’ experience in the franchising industry, Derek Cafferata and his team work with business owners who are looking to expand their brand through the franchising business model.

If you want any information about franchising in the U.S. or internationally, contact All State Franchise Finders on 1-800-544-2161 or visit today. All State Franchise Finders – Your Franchising Experts!