The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
What’s a master franchise?
John Pratt writes:
There are many ways a franchisor can expand overseas. Traditionally, one of the favourite ways is to appoint a master franchisee who becomes, in effect, the franchisor in the overseas territory.
The master franchisee will have to enter into a detailed master franchise agreement, which sets out precisely what they are required to do and what the franchisor has to do. There is an initial payment to the franchisor to reimburse the franchisor’s costs.
The master franchisee may be given the right to open its own outlets, but the general thrust of the arrangement is that the master franchisee will look for sub franchisees with whom it will enter into franchise agreements. The terms of these must be approved by the franchisor and the franchisor will receive a percentage of the continuing fees payable to the master franchisee.
The drawback with master franchising is that the franchisor does not generally have a direct contractual link with the sub franchisees and, accordingly, there’s a loss of control. This means master franchising is particularly suited to businesses that are relatively simple. So master franchising may be less suited to, for instance, restaurants or domiciliary care businesses.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in

Answered by Mark Meyer
Mark Meyer writes: The pandemic has accelerated the trend commonly described as ‘the death of the high... read more

Answered by Shelley Nadler
Shelley Nadler writes: The law prohibits anticompetitive agreements that fix prices between businesses. A franchisee therefore controls... read more

Answered by Louise Harris
Louise Harris writes: The use of fixed fee versus percentage of turnover royalties (or management service fees)... read more

Answered by John Pratt
John Pratt writes: At the moment, nobody knows. Franchise agreements are all different, so the first thing... read more
Exciting Franchise Opportunities

Start your own Stagecoach Performing Arts franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Stagecoach Performing Arts for further information!

Start your own FASTSIGNS franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to FASTSIGNS for further information!

Start your own Subway ® franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Subway ® for further information!

Start your own Just Shutters franchise
Yes
Find Out More£50,000 – £100,000 profit

Request Free Information
Send a free enquiry to Just Shutters for further information!

Start your own ServiceMaster Clean Commercial franchise
Yes
Find Out More£76,903 gross profit in year 2

Request Free Information
Send a free enquiry to ServiceMaster Clean Commercial for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Brexit property investment myths BUSTED!
Added one year ago | 2 min read
-
Former pro footballer helps everyday people get back into fitness
Added about 14 hours ago | 2 min read
-
US burger brand announces UK arrival
Added about 18 hours ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news