A Master Franchise is a
contract in which the
franchisor hands over the
control of the franchising
activities in a specified
territory to a person or
entity. Master franchising
is a method that has been
employed by most franchise
systems.
The Master Franchisee
typically pays the
franchisor company a
significant initial fee for
the rights to develop the
territory and then retains
part of the franchise fees
and royalty fees paid over
time by the individual
franchisees in the
territory.
Master Franchisee is usually
responsible for recruiting
the individual franchisees
and providing all training
and support they need, both
initially and on an ongoing
basis. |
