The franchise business model has evolved to offer various structures, one of the most prominent being the Master Franchise model. This arrangement allows businesses to expand rapidly while giving entrepreneurs a chance to own and operate a franchise at a higher level.
Understanding the Master Franchise Model
A Master Franchise is a franchising arrangement where a franchisor grants an individual or entity (the master franchisee) the rights to operate and expand the brand within a specific region or country. The master franchisee takes on the responsibility of recruiting and supporting sub-franchisees, collecting fees, and ensuring brand standards are maintained.
Unlike a traditional franchisee who owns and operates a single unit or multiple locations, a Master Franchisee functions almost like a mini-franchisor within their designated territory.
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