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Sunday, July 20, 2025

Multi-franchise and master franchise: investment strategies for ambitious entrepreneurs

Multi-franchise and master franchise: investment strategies for ambitious entrepreneurs
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In the dynamic world of franchising, moving from a single point of sale to multiple units can prove to be a powerful lever for profitability and growth.
For investors and experienced franchisees, understanding the concepts of multi-franchising and master franchising is essential to maximizing expansion opportunities.
This article examines these two models and offers perspectives on how to leverage these approaches.


Multi-franchising: A model for enlightened growth

Multi-franchising involves operating multiple outlets under the same brand. This model allows entrepreneurs to capitalize on the expertise acquired through their first unit. For example, Babichou Services franchisee Davy Rodrigues opened his first branch in Fréjus in 2017 and, after establishing a solid foundation, decided to open a new branch in Cannes. His experience illustrates how understanding a local market can lead to successful expansion.
For investors, multi-unit franchising represents a lucrative opportunity. By developing multiple units under a single brand, franchisees can benefit from economies of scale, centralized marketing, and ongoing support from the franchisor. However, it's important not to underestimate the challenges; ensuring sufficient cash flow and having a management strategy in place for each new unit is essential.

The Master Franchise: Exploiting New Horizons

Unlike a multi-unit franchise, a master franchise allows an entrepreneur to hold the operating rights for a franchise in a specific territory while also having the option to sub-franchise. This business model sees master franchisees play a key role in network development, as they provide training and support to the franchisees under their responsibility.
For investors, becoming a master franchisee is an ideal way to firmly establish their market presence while diversifying their assets. This model allows them to accelerate the brand's growth while optimizing returns on investment through rapid expansion in specific geographic areas.

Preparing for expansion: keys to success

When considering moving to multi-franchising or becoming a master franchisee, there are certain aspects that need to be carefully considered:
  1. Developing a compelling business plan : A robust business plan is essential to attract the interest of investors and banks. This document should include realistic financial projections, a detailed plan for the use of funds, and a thorough analysis of the target market.
  2. Strategic evaluation of franchise agreements : Franchise agreements vary from one brand to another, and it is essential to understand these differences before committing. Clauses relating to multi-franchise or master franchises should be studied in depth.
  3. Surround yourself with knowledgeable professionals : Collaborating with franchise experts, specialized attorneys, and financial consultants is crucial to avoiding legal and financial pitfalls. These professionals can also help develop strategies on how to optimize the management of multiple units.
  4. Continuing Education and Leadership Development : Managing multiple retail locations requires advanced management and leadership skills. Participating in training programs to develop these skills can make all the difference.
Investing in a multi-franchise or master franchise can propel entrepreneurs to new heights of success. By understanding the nuances between these models and adopting a rigorous planning and execution approach, investors can not only ensure the sustainability of their projects but also create considerable added value. Seeking the right advice, developing a solid business plan, and establishing a trusting relationship with the franchisor will maximize their chances of success.