Categories: Franchise Insights

Master Franchise Agreement

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
Franchisor's tasks

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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