Master Franchising Agreements

Master franchising agreements are particularly valuable in service industries such as restaurants and retail.

A fundamental aspect of this model is an initial requirement for the master franchisee to establish and successfully operate several pilot units before proceeding to sub-franchise.

This ensures the franchise brand is consistently viable across new markets, but maintaining control over brand standards can pose significant challenges, as the master franchisor does not interact directly with the sub-franchisees.

In such cases, it is necessary to implement a robust legal framework in which the master franchisor relies on the master franchisee to manage and uphold the quality and operational standards at the sub-franchisee level.

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