The Master Franchise Agreement (MFA) allows Franchisor to hand over tasks and responsibilities to a local partner. This business model can be the right vehicle in the case of a brand searching for aggressive growth with limited investment in time and resources.
Franchising vs Master Franchising
In a MFA, part of those tasks that are usually under the Franchisor’s responsibility are handed over to the Master Franchisee.
In details, the Master Franchisee becomes responsible for:
- Ingredients supply chain managemnet
- Partner sourcing
- Contractual obligation with franchisees
- Drawings sign off
- Franchisee training
- Pre-post opening support
- Sales management (reporting, invoicing, collection)
- Marketing leadership/control
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