Common Contracts
1 similar Master Franchise Agreement contracts
How Does Termination of a Master Franchise Agreement Affect the Unit Franchisees?Master Franchise Agreement • October 19th, 2020
A master franchise is quite different from other types of franchises such as the single unit, multi-unit or area development franchise. A master franchise agreement grants the right to another person or entity, the “subfranchisor,” or the “master franchisee,” to not only operate a franchise, but to sell units of the franchise to other persons or entities, known as “subfranchisees,” in a predetermined geographical area. A master franchise agreement will define the relationship and business operations between a subfranchisor and subfranchisee but the subfranchisors will have separate unit franchise agreements with actual units. There is no privity of contract between the master franchisor and the subfranchisees. Master franchises are commonly used when the franchisor is located in a geographically remote location from a desired market, which is why many international franchisors will utilize this system. Ideally, subfranchisors will offer a sense of familiarity and knowledge in regard to
