Why Some Franchisees Are Franchising Their Own Locations

Episode 19 of Franchise Conversations with Fexingo. Lucas and Luna explore the emerging trend of sub-franchising, where successful franchisees themselves become mini-franchisors, licensing their operating model to other investors within the same brand. They examine the 2024 case of a Jersey Mike's operator in Florida who sub-franchised to five new units, the legal and financial mechanics involved, and why this structure is gaining traction amid rising labor costs and franchisee demand for semi-passive income. The hosts discuss how sub-franchising differs from traditional multi-unit ownership, the role of the master franchisee, and potential pitfalls around brand consistency and legal liability. Specific numbers include the typical sub-franchise fee of $15,000 to $30,000 per unit and how sub-franchisees often operate at 20 percent lower overhead due to shared back-office systems. The episode closes with a reflection on whether this model could reshape franchise hierarchies toward flatter, licensee-driven growth. #FranchiseConversations #SubFranchising #FranchisingTrends #JerseyMikes #FranchiseeToFranchisor #MultiUnitFranchisee #MasterFranchisee #PassiveIncome #BusinessModel #GrowthStrategy #LaborCosts #FranchiseLaw #BrandConsistency #UnitEconomics #FloridaBusiness #BusinessPodcast #FexingoBusiness #Entrepreneurship Keep every episode free: buymeacoffee.com/fexingo