FREE 10+ Master Franchise Agreement Samples in MS Word | Google Docs | Apple Pages | PDF

Franchising business is a popular type of business that aspiring business owners can easily delve into because the business model is easy to follow and preparing for the business is already set by the main company of the business. If you’re interested to own and manage a franchise, one of the things you can do is to become a master franchisee. A master franchisee has more advantages compared to other franchisees because you get to screen, sell, and sign individual franchisees within your territory to other business owners and you can even earn royalties from the franchises you’ve recruited. To officialize becoming a master franchisee, an agreement is made for you to proceed with the responsibilities that come along with becoming a master franchisee. This article will guide you on how to make a master franchise agreement.

10+ Master Franchise Agreement Samples

1. Master Franchise Agreement Template

2. Master Franchise Agreement

3. Sample Master Franchise Agreement

4. International Master Franchise Agreement

5. Master Franchise Development Agreement

6. Termination of Master Franchise Agreement

7. Company Master Franchise Agreement

8. Master Franchise Agreement Format

9. Standard Master Franchise Agreement

10. Equity Partner Master Franchise Agreement

11. Master Franchise Services Agreement

What is a Master Franchise Agreement?

A master franchise agreement is a type of franchise agreement that lets the master franchisee have the right to own and operate more than one business establishment or unit and the right to open a sub-franchise by letting other franchisees operate during a specified time within a specific area.

There are three main participants in a master franchise agreement: the franchisor, the one who owns the business, the franchise handbook and the products sold, and the master franchisee, the one responsible for developing the franchise business.

How to Make a Master Franchise Agreement

1. Make the Introduction

The introduction is where you provide information by describing the key elements of the agreement and stating the intentions of the parties that go with the agreement. The introduction must include the following details:

• A description of the parties involved in the agreement
• A description of the franchise business and its background details
• Ownership of the franchise business
• The documentation provided by the franchisor to the master franchisee
• Objectives of the parties for the agreement

2. Include the Rights Granted

This section is where it includes the description that the franchisor grants the master franchisee the right to do the franchise business and to grant franchises to sub-franchisees according to the limits in the agreement. Furthermore, trademark licenses and intellectual property rights should also be discussed in the agreement.

3. Discuss the Terms Relating to Territory

Define clearly the geographical territory that is assigned to the master franchisee. Discuss also the exclusivity of the territory regarding the return for the investment that they make for the development of the franchise business that the master franchisee is granted to have.

5. Include the Development Schedule

Include a development schedule that lists the number of the developments of franchise units to be opened in the assigned territory. Include details on the process of providing solutions for situations where the developments are not finished within the given schedule.

6. Explain the Fees

Include the following fee details in this section:

• Initial fees for the rights granted to the master franchisee
• Royalty or continuing fee for the use of the franchise system
• Method on how to determine fees and how they will be calculated and paid

7. Include Details Regarding Advertising

Include provisions regarding the advertising structures for the franchise business and the specific standards on the responsibilities, control, and financing of advertising.

8. Explain Details Regarding Contract Termination and Other Important Terms

Include provisions that agree to terminate based on any terms and conditions that will end or breach the contract, all applicable laws that should be included in the contract, and terms regarding dispute resolution.

FAQs

Once you’re done drafting the agreement, make sure to review it first and check to see if there are any errors or inaccurate information that were included. Discuss the agreement first with all the parties involved in this contract and agree on all the terms and conditions first before everyone signs the agreement. To help you get started writing the agreement, download our free sample templates above to use as your guide!