Master franchise agreement
A master franchise agreement is a business arrangement where a company (the franchisor) grants an individual or group (the master franchisee) the rights to operate and sub-franchise a brand in a specific region. The master franchisee pays an upfront fee and ongoing royalties, and in return, they assume the responsibility to develop the franchise in that area, including recruiting and supporting other franchisees. This allows the franchisor to expand their brand without directly managing every location, while the master franchisee benefits from the established brand and support system.
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A Master Franchise Agreement is a business arrangement where a company (the franchisor) grants an individual or entity (the master franchisee) the rights to operate and manage multiple franchise locations in a specific area. The master franchisee typically pays an upfront fee and ongoing royalties to the franchisor. In return, they receive support, training, and exclusive rights to sub-franchise the brand within their territory, allowing them to sell additional franchises. This arrangement helps expand the brand while enabling the master franchisee to build their own business.