Business For Sale Listing 157675
Master Franchises
Status as of Jan-7-2009 at 05:59 PM: Active
Business Summary
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!
Marston has recently associated with a group that has exclusive rights to market Master Franchises in the following industries:
On-site Computer Repair
Deli
Senior Care Services
Fitness Center
Smoothie Café
Tobacco
Moving & Shipping Supplies
Restaurants
Niche Espresso Shop
Furniture & Cabinet Restoration
Human Resources for Small Business
Categories
Industry
Location
Financials
| Sales: |
Not Disclosed |
| Profits: |
Not Disclosed |
| Profit Type: |
Not Applicable |
| Asking Price: |
Not Disclosed |
