Master Franchise
A master franchise is an arrangement where a company (the franchisor) grants an individual or organization (the master franchisee) the rights to operate and manage franchises in a specific area or country. The master franchisee can sell sub-franchises, effectively acting as a local franchisor. This arrangement allows the franchisor to expand rapidly with less direct involvement while giving the master franchisee the chance to build a business network and earn income from franchise fees and royalties. It's a way to leverage local expertise and resources for successful brand expansion.
Additional Insights
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A master franchise is a business arrangement where a company (the franchisor) grants a franchisee the rights to operate its brand in a specific area and, importantly, allows the franchisee to recruit and manage other franchises within that area. This means the master franchisee acts as a middleman, overseeing multiple franchises and providing support to them while sharing in the profits. This model enables the franchisor to expand their brand without directly managing each location, while the master franchisee benefits from a larger territory and multiple revenue streams.
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A Master Franchise is a business arrangement where one party (the master franchisee) is granted the rights to develop and manage a specific franchise brand in a designated area, often a country or region. This master franchisee not only operates their own franchise locations but also has the authority to sell sub-franchises to other business owners within that territory. In return, the master franchisee pays fees or royalties to the original franchisor. This structure allows for local management and expansion of the franchise while enabling the franchisor to grow their brand more rapidly.