Master franchise
An agreement granting a partner the rights to develop and sub-franchise a concept across a defined territory — typically a country. The master franchisee recruits and manages local franchisees and shares a portion of fees and royalties with the franchisor.
In practice
Master franchise is the standard vehicle for capital-light international expansion: the local partner brings market knowledge, language, local networks and development investment. The franchisor trades a share of margin for speed and local relevance it could not achieve alone. Selecting the right master commits both parties for ten years — selection criteria matter more than the entry fee amount.