A master franchise is a business model where the franchisee not only opens and operates franchise units but also has the right to sell sub-franchise licenses to other franchisees within a specific territory. Master franchisees are responsible for recruiting, training, and supporting the new franchisees, in addition to managing their own locations. In exchange, they receive a share of the franchise fees and royalties collected from sub-franchisees. The master franchise model allows franchisors to expand rapidly without bearing the costs and complexities of managing multiple units directly.
Master Franchise
This term
A master franchisee holds the rights to sub-franchise and expand the brand in a specific territory.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
