Franchise Glossary
Master Franchise
What is Master Franchise in franchising?
An arrangement where a franchisee (the master franchisee) purchases the rights to develop and sub-franchise a brand within a large region, often a state, country, or major metropolitan area. The master franchisee recruits, trains, and supports individual unit franchisees within their region and earns a portion of the fees and royalties those franchisees pay. Master franchise agreements are capital-intensive and operationally complex but represent a significant business-building opportunity.