Master franchising is an arrangement where the franchise company provides rights and responsibilities of their brand within a given geographic territory. Master franchise rights can be for an entire region or for a province. Essentially the master has purchased the rights to develop that particular franchise brand within their allocated territory.
Master franchising is most often used for national expansion. The master franchise in a specific territory essentially becomes a franchisor themselves and will begin to develop and sell unit franchises within that territory.
Please reach us at one.francogroup@gmail.com if you cannot find an answer to your question.
1. The Franchisor benefits with an immediate infusion of cash from the sale of the master franchise, and now has someone in the region with an intimate understanding of the economic, business, demographic and cultural landscapes within that country or city.
2. The master franchisee benefits with the strength of the brand, franchisor support, and will typically share in the ongoing royalties and franchise fees from locations in their territory. What is the typical split in a master franchise relationship? We have agreements all over the board however the most basic is a 50/50 split
1. The cost for Master Franchise for Provincial exclusivity is only P500,000
2. The cost for Master Franchise for Regional exclusivity is P1.5M
1. 40% - Provincial
2. 50% - Regional
The contract is between 10-20 years.
Master Franchisee earns his share from the following:
1. Franchise Fees
2. Royalty Fees
3. Raw materials re-purchase
4. Packaging materials re-purchase.
5. Others
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.