What Is Master Franchising Or Sub-Franchising?

Franchise Key:

This is a form of franchising whereby the franchisor grants another natural or legal person, known as the master franchisee, the right to operate a franchise in a major territory (a country for example).

The franchisee is then expected to agree franchise agreements with other individual franchisees. The master franchisee thus acts as a franchisee vis-à-vis the original franchisor and usually plays the role of franchisor with regard to the individual franchisees recruited. This position is comparable to the role of importers or wholesalers.