The Best Kept Secret in Franchising

If you really want to own your own business, there is a franchise that will fit every requirement. Do you want a home based business? Do you want to work on the business part time? Do you want to be a passive owner? Do you want a business that operates during standard business hours, Monday through Friday, 9-5? After Meta-Franchise Consulting finds a franchise that will meet all of your requirements, the next question is: what type of franchise arrangement is best for you?

There are three franchise arrangements that a new franchisee can choose from before signing the franchise agreement. The first arrangement is a single-unit franchise. In this arrangement, the franchisor grants the franchisee the rights to open and operate one franchise unit. This is the simplest and most common franchise arrangement. Some franchisees start out as single-unit operators and then buy the rights to a second or even third unit after the first becomes successful.

The second arrangement that a franchisee can choose is area development. In this arrangement, the franchisor grants the franchisee the rights to open more than one unit during a specific time, within a specified area. For example, the franchise agreement may state that the franchisee will open three units in a three year period within the county in which they live. The benefit of agreeing to multiple units up front, as opposed to adding on later, is that the franchisor will often discount the franchise fee for your second and third units.

The third arrangement that a franchisee can choose is a master franchise. This arrangement is similar to the area development in that the franchisee is granted the right to multiple units. In addition to multiple units, the franchisee is granted the right to sell franchises to other people within their territory. When the franchisee takes on sub-franchisees, they take over many of the tasks of the franchisor like training and support. In exchange for taking on those tasks, the master franchisee receives a percentage of the franchise fee paid by the sub-franchisees and a percentage of each month's royalties. Additionally, the franchisor will often significantly discount the franchise fee for each unit opened by the master franchisee and the master will pay reduced royalties on each unit they own. The master franchise arrangement may be the best kept secret in franchising, and for the right franchisee can provide an amazing return on investment.

Please contact Meta-Franchise Consulting at www.metafranchiseconsulting.com or metafranchiseconsulting@gmail.com for more information.