Master License

Master License

Master franchising is a form of the franchisor-franchisee relationship in which the master franchisee essentially becomes a mini-franchisor for a specified territory. Within that territory, the master franchisee recruits, trains, and provides ongoing support to each franchisee they sign.

In exchange, the master franchisee receives a large percentage of the initial franchise fee and ongoing royalties, typically 50 percent, though it varies. The master franchisee usually agrees to a development schedule, which can include owning and operating their own units.

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