This is a master franchise agreement. The form grants franchise rights to a subfranchisor to operate restaurants and to procure, screen, qualify, train, and assist subfranchisees of the restaurant.
Master Franchise Agreement
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FAQ
In master franchising, the franchisor sells the development rights of a particular area to a master franchisee who, in turn, sells individual franchisees within the territory.The master franchisee is responsible for attracting, screening, and signing all new franchisees within the territory.
In effect, a master franchisee becomes the franchisor for his territory and is responsible for recruiting and training his own franchisees, whereas in what you call a normal franchise the franchisee simply runs the outlet delivering the product or service.
Know your responsibilities. A master franchisee is generally responsible for recruiting individual franchisees. Do your research. Take a road trip. Interview successful master franchisees. Look for the right match.
How Much Money Can You Make Owning A Franchise? If you Google the national average income for a franchise owner in the United States, you'll find answers ranging anywhere from $50,000 to $200,000+ per year.To learn the most effective way to research franchise brands, read our guide on how to conduct due diligence.
The master franchise model allows the entrepreneur to develop a large business operation within a relatively short period of time with a concept that has already been developed by the franchisor. Entrepreneurs with the necessary capital and management talent can experience significant growth and value appreciation.
The master normally gets a cut of all the money that flows from the individual franchisees to the main franchise company -- most often around half. This could include initial franchise fees, ongoing royalty fees, training fees, real estate or build-out assistance fees.
A master franchise agreement is an agreement executed by and between a franchisor and a master franchisee, whereby the franchisor grants the master franchisee rights to the franchise and licence to: (i) exploit and use intellectual property rights, including without limitation, the trademarks, manuals and 'know-how' (
A master franchise is a franchising contract in which the master franchisor (the owner of the brand name) hands over the control of the franchising activities in a specified territory to a person or entity, called the "master franchisee".