Franchise Q&A


Q: What does the role of master franchisee entail?


Suzie McCafferty


Managing director at Platinum Wave


A: To gain a footing in international markets, many companies will appoint an agent or distributor in the target country. This, however, will often produce mixed results, as it is hard to maintain control over branding, quality, sales performance and standards.


Others will establish a concession or licence partnership and this can certainly work well in some circumstances for relatively simple franchise concepts. Where we see the greatest success, however, is with the appointment of a country or regional master franchisee. Master franchising involves the granting of rights by the franchisor to the master franchisee to operate a brand within a specifi ed country or region, and the authorisation for the master franchisee to


then franchise to others within that territory. If it sounds confusing, just think of it as this: you’re a partner in another country performing the same role as the franchisor, rather than emulating the role of franchisee – basically, you do what they do, but in another country. There are plenty of regions where franchising is a much more prevalent way of doing business than here in the UK – Australia, New Zealand, the US, Canada and the Middle East all come readily to mind. One of the great advantages of such franchise-savvy populations is that, provided you understand the mechanics of how each country likes to do business, you won’t need to work too hard convincing them of the merits of a well-structured and proven franchise system.


July/August 2018 | BusinessFranchise.com | 21


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