Master Franchising
In master franchising, a franchisor grants a franchise in respect of a whole territory or country. The master franchisee is then responsible for recruiting sub-franchisees, and training and supporting them.
The master franchisee essentially becomes a mini-franchisor for the specified territory or country.
In exchange, the master franchisee receives a large percentage of the initial franchise fee from each sub-franchisee, and a large percentage of ongoing fees.
The master franchisee usually agrees to a development schedule, which may include owning and operating their own units.
