Article · Entrepreneur · July 31, 2024

How to Invigorate Growth and Balance Control in Your Business With This Franchising Model

A franchisor weighing master franchising against unit-by-unit growth.

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In short

Rob Lancit explains the master franchisee model and why not every franchisor should use it. A master franchisee takes a territory far larger than a single unit and acts as an intermediary, which is why the industry also calls the role a sub-franchisor. He cites two quick-service restaurant brands that used the model to expand internationally and to adapt menus to local tastes, and notes that the brand he represents, Stratus Building Solutions, uses it inside the United States.

The model suits franchisors with proven systems and an offering that can be replicated across regions, and that are willing to hand over real operational control. Franchisors who want tight control of standards are a poor fit. He describes the person required: fully committed, financially stable enough to sustain fast growth, experienced in scaling a business, able to recruit and lead franchisees, and fluent in local customs and regulations. Territories abroad are often granted by country. In the United States they may cover a state or a defined region.

He lists the duties: local marketing, training, streamlining operations, recruiting franchisees and community engagement, all with little direct oversight. His closing caution is that the approach depends on a rare kind of operator, that quality and consistency slip first when oversight falters, and that monitoring and supporting masters takes real resources.

“And people of this caliber don’t exactly grow on trees.”
Rob Lancit, Entrepreneur, July 31, 2024

The original

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Format
Article
Published in
Entrepreneur
Date
July 31, 2024
Best for
A franchisor weighing master franchising against unit-by-unit growth.
Topics
Franchise DevelopmentFranchise OwnershipLeadership

Read it at Entrepreneur

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