Wisconsin Master Franchise Agreement

State:
Multi-State
Control #:
US-2-03-STP
Format:
Word; 
Rich Text
Instant download

Description

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.
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FAQ

The standard would be 50/50, but this will vary depending on roles and responsibilities. For example, if the master franchisee is doing less training and support, you as the franchisor may keep 70% of the royalty fees and pay the master 30%.

How is a Franchise Disclosure Document Structured? Item 1: The Franchisor, and any Parents, Predecessors, and Affiliates. Item 2: Business Experience. Item 3: Litigation. Item 4: Bankruptcy. Item 5: Initial Fees. Item 6: Other Fees. Item 7: Estimated Initial Investment. Item 8: Restrictions on Sources of Products and Services.

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.

Advantages of a Master Franchise Agreement In terms of investment, an MFA may help you lower your initial outlay and ongoing expenses. Since you're responsible for developing the network within your territory, you often receive a portion of franchise fees and royalties from the franchisees you oversee.

The key elements of a franchise agreement generally include: Territory rights. ... Minimum performance standards. ... Franchisors services requirements. ... Franchisee payments. ... Trademark use. ... Advertising standards. ... Exclusivity clause. ... Insurance requirements.

The Drawbacks In this scenario, franchisors often have less control over their franchises after a master franchisee comes into play as their responsibilities would also be delegated away. This could potentially result in brand dilution and inconsistent service standards.

Under a master franchise agreement, the master franchisor grants to the master franchisee a specified area where the master franchisee has the right not only to open franchise units itself, but also to ?sub-franchise? to third parties.

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Wisconsin Master Franchise Agreement