Franchisor can give a master franchise.

There is a difference between

franchise and master franchisor. Master franchisor is all about having that
enthusiasm in the veins to run a business successfully, it’s about building
the foundation of a business. A master franchise is a franchising contract
in which the master franchisor (the owner of the brand name) hands over
the control of the franchising activities in a specified territory to a person
or entity, called the "master franchisee" while a franchise is a business
system in which private entrepreneurs purchase the rights to open and
run a location of a larger company.

A franchisor gives the master franchise which further has three choices to
expand. These options include regular franchise, multi unit franchises and
areas to develop. In regular franchise, franchisor gives the right to run the
business at a particular location, multi unit franchises includes an entity to
operate business at multiple locations and to develop the business across
the country comes under areas to develop part. “There are many
restaurants running successfully in Delhi which are single unit without
being them franchise able. For us, to open and operate a restaurant is to
ensure that the quality and standardisation needs to be maintained. And,
to achieve this we actually spend couple of years with those restaurants
and made them franchise able and now opening the restaurants across
the country,” avers Sana Chopra, Executive Director at Carls Jr. Restaurants
LLC. We have embassy restaurant at one place and now we are opening
same embassy restaurants across the globe following the same model,
she adds further.

Why should someone take a Master Franchise?

There are various reasons why someone should. When there’s a parent
company who gives Master Franchise then they actually cyst the brand a
lot of avenues. Everything is handed out by the Master Franchise on the
platter. Here are few aspects.

Human Resource Deployment

Master Franchise actually assists the brand with the hierarchy i.e., how
many people one needs, job description, et cetra. Also, one is able to hire
his own people in Master Franchise instead of franchise where they are
already bound to work with the provided corporate team whether they are
compatible or not.

Operations & Supply Chains

Master Franchise also helps with operations and supply chains so that the
brand has greater control over supply chains, inventory management,
maintaining the stocks in the restaurants and warehouses, brand has
greater access to be a part of the whole process. Brand is even flexible in
choosing the hours of operation.

Product Development
It is like a direct opportunity to get connected with the parent company
and help them to establish what product to sell in a restaurant or a retail
outlet. It is more than a plug in and plays process. It’s about involving in
the whole process. “Carls Jr. Restaurant has done three years of extensive
research with the brand before handling them the master franchise,” adds
Sana.

Quality Maintenance
Master Franchise is responsible to maintain the overall quality of each
food item and process as auditing and training to staff over quality needs
to be done by them only. Master Franchise has the control in its hand;
they are actually able to control how a brand should establish in a country.

Marketing, Advertising & Communication

The time of an agreement signing the parent company tells Master
Franchise that they need to allocate a certain percentage of pre opening
budget and post opening revenue into marketing.

Master Franchise builds foundation for business and a brand needs to

make most out of it.