Having a background in business and an interest in entrepreneurship opens the door for an abundance of opportunities. With all these options available, choosing the right one can be a difficult task. In considering the many possibilities, one promising option tends to be overlooked: the master license. Procuring the master license from a franchising company entails the right to establish points of sale within the master licensee’s country or region and to sub-franchise—redistributing this right to individual franchisees looking to establish a point of sale in that same region. In this, it’s typical for the master licensee to open a pilot store to validate the business concept in the new region, followed by intensive retail network development efforts. Through these activities, the master licensee reaps the benefits of multiple revenue streams and framework agreements, while also gaining access to an extensive network of other entrepreneurs.
- A Collaborative Approach with the Franchisor
Establishing a healthy franchise network from scratch in a country may seem like a challenging task; however, the Master Licensee receives ongoing support from the Franchisor during the entire start-up process and beyond. In the initial planning stages, the Franchisor provides industry-specific know-how to complement the Master Licensee’s understanding of the local business environment. Besides, the Franchisor provides training, supplying the Master Licensee with everything they need to know to run the pilot store (operations, sales, HR, marketing, and finance) as well as product insights and retail network development best practices.
- The Benefits of Joining a Network
Choosing to join a network provides several significant benefits. First, the franchising business model equips the Master Licensee with multiple revenue streams. In addition to revenues generated from the pilot store, the Master Licensee also receives income from retail network development—selling licenses to individual franchisees—and from ongoing royalties from each individual store in the Master Licensee’s territory. Combined, these 3 streams suggest a resilient business model with the potential to become an income generator. This allows the Master Licensee to source confidently while also saving time. Finally, by joining a network of capable entrepreneurs, the Master Licensee gains access to countless sources of know-how.
Thus, insights from Master Licensees from other parts of the world that participate in multiple industries become available and can complement the Master Licensee’s existing repertoire of business knowledge and strategy. Interested to know more?