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Master franchise

Master Franchise

 

It’s a type of franchise where there the main franchise gives a territory or franchise license to another enterprise to allow them to be kind of a secondary franchisor on a given area, it can be a state, continent, or country. Depending on the agreement, they can take make investments, franchise to others, and take decisions on their territory, like having different strategies, franchise fees, or prices.

E.g., MacDonald’s corporation, the main franchisor from the US, and Corporación Arcos Dorados, the “sub-franchisor” from Panama, who operates all over Latin America.

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