Responsibilities Of Master Franchisee |
Posted: November 8, 2017 |
If in case a franchise is expanding through master consultants, it means they have hired a person or entity to offer the services in a specified territory. Franchise specialist pays a significant initial fee to the franchisor to own the rights to build the territory and retain initial investment paid over time by individual franchisees in the territory. A franchise specialist at the country level has the power to replicate what a franchisor does in their domain. This will include:
Based on a franchise model, the Franchise specialist may also take care of the matter of national marketing including maintaining national accounts on part of the network. The U.S. Based Franchisor provides a business model for delivery service and a model of how to run a franchise successfully to the master franchise at the time of recruitment. The business model of franchisor may include the information of training, support, branding, marketing and so on. Franchise specialists usually have the knowledge of the local market that is associated with employment, health and safety, regulatory issue and so on. They also have complete insight about local demographics and staff recruitment that is totally country-specific. To get success in business in a new country, both parties need to bring together their matching knowledge and expertise. A master franchisee always enjoys freedom in terms of running the business. They have the freedom to modify the brand to the local market. Let’s take an example of the food sector, 10 % of dishes are added to the menu by considering the preference of local residents. A franchise consultant usually faces no problems in using the best resources of the franchise business. The master should always consider franchisor as a source available to them to boost their success percentage, not as ‘God Father’ to follow. If the master considers the source as their godfather, then there is no future of their relationship. Based on the ownership and corporate structure of the business, the master may also have the responsibility for developing an exit strategy in case of an unfruitful relationship with the franchisor. This will need to fulfill all financial goals and recognizing an exit point. This is undoubtedly a point where the master can clearly see no capital gain on their initial fee.
|
||||||||||||||||||
|