Master Franchise

A master franchise (or master license) grants an individual or entity the right to act as the franchisor within a specific geographic region or country. The master franchisee can open their own locations and also recruit, train, and support sub-franchisees within their territory, essentially operating as a regional franchisor. Master franchisees typically pay a higher initial fee but receive a portion of franchise fees and royalties from sub-franchisees. This model is commonly used for international expansion and large domestic territories where the franchisor lacks the infrastructure to support franchisees directly. The master franchisee takes on significantly more responsibility and risk but also has much higher earning potential than a single-unit operator.