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Financial Freedoms and Income Example
Unlike other business systems, Master Franchisees truly have the ability of turning their dreams of financial freedom into reality... |
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Here is a typical example:
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You purchase a territory from an automotive franchisor or a computer franchisor for a certain amount of money (your investment). A typical territory can cost between $50,000 and $500,000.
Your agreement with the Franchisor may state that you will receive 50% of the franchise fee and 50% of the royalty income, for each unit sold or opened within your territory.
Let's assume that the franchise fee is $25,000 per unit and the royalty is 6%. That means that for each unit opened in your territory, you will receive $12,500 (50% of the $25,000 franchise fee). |
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| Let's go one step further; assume that each unit opened will have a gross yearly sales volume of $1,000,000. Each unit is then required to pay a royalty of 6% of their gross sales, equaling $60,000 per year. You as the Master Franchisee would then receive 50% of this amount or $30,000 per unit, per year! |
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One Unit Opened:
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Your Income:
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Initial Franchise Fee $25,000 |
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$12,500 initial fees you collect
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Annual Gross Sales $1,000,000 |
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$30,000 annual income to you
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$42,500
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Ten Units Opened:
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Your Income:
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Initial Franchise Fee $25,000 X 10 |
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$125,000 initial fees you collect
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Annual Gross Sales $10,000,000 |
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$300,000 annual income to you
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$425,000
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Twenty Units Opened:
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Your Income:
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Initial Franchise Fee $25,000 X 20 |
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$250,000 initial fees you collect
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Annual Gross Sales $20,000,000 |
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$600,000 annual income to you
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$850,000
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If 100 units open in your territory, your royalty income would be $3,000,000 per year. In addition to that, you would have made an income of $1,250,000 for opening 100 units because you received 50% of the franchise fee which is $12,500 (100 x $12,500 = $1,250,000)
The profit potential of owning a successful Master Franchise territory is huge. |
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Sounds Incredible, Is It Real?
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