Franchise Glossary
Master Franchise
A franchise arrangement where a master franchisee is granted the right to sub-franchise within a large territory.
In a master franchise arrangement, the master franchisee essentially acts as a mini-franchisor within their territory — they recruit, train, and support sub-franchisees on behalf of the brand. This model is commonly used for international expansion. The master franchisee typically pays a larger upfront fee and earns revenue from sub-franchise fees and ongoing royalties. It requires significant capital, management capability, and market knowledge.
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