Within the world of franchising, there exists a little-known opportunity that has created franchise fortunes, known as a Master Franchise or Area Representative Franchise.  It is simply owning the rights to a franchise territory. This territory can be a metropolitan area, an entire state or several states. The Master Franchisee assists the parent franchise company in the sales and development of the territory in exchange for a share in the royalty revenues and franchise fees from every unit in the territory. This amount is typically half of each. 

Example: The Master Franchisee receives 50% of each franchise fee and 50% of the royalty income. Let's assume that the franchise fee is $30,000 per unit and the royalty each unit pays is 6% of their gross sales. That means for each unit opened in your territory the Master Franchisee would receive $15,000 (50% of the $30,000 franchise fee).

Let's also assume that each unit in the territory has an average yearly gross sales volume of $1,000,000. Each unit would pay a royalty of 6% of their gross sales, which is $60,000 per year.  The Master Franchisee would receive 50% of this amount which is $30,000 per unit per year.  This is the ultimate franchise investment opportunity.  It is a solid, low risk investment that can provide a substantial lifetime income for the investor and their heirs.

If 10 to 100 units opened in the territory, the royalty income would be $300,000 to $3,000,000 per year. In addition they would have received an additional franchise fee income of $150,000 to $1,500,000.

This yearly income can last for perpetuity!

(The numbers above shall not be considered an offering nor are they guarantees, they are examples for purposes of explanation.)