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A Master Franchise is a type of franchise agreement where a company grants an individual or entity the rights to act as the franchisor in a specific region or country, in this case, the United Kingdom.
The master franchisee has the authority to establish, manage, and support a network of sub-franchisees within that territory.
It allows entrepreneurs to tap into a business with an established brand, successful operating procedures, and an existing customer base.
Master franchisees typically receive exclusive rights to develop the brand within a specified region, reducing competition and allowing for strategic growth.
The master franchisee can generate revenue from both the operations of their own units and the fees/royalties from sub-franchisees, creating multiple income streams.
The master franchisee has control over the expansion and development of the brand in their region, making decisions on where to open new franchises and who to appoint as sub-franchisees.
Master franchises typically require a significant upfront investment, including the territory fee and the cost of establishing the initial units.
The master franchisee is responsible for recruiting, training, and supporting sub-franchisees, which can be a complex and time-consuming task.
The master franchisee may be required to meet certain growth targets, such as opening a specified number of units within a set period.
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