Franchise Law: Master Franchise Agreements
A master franchise agreement is a contract entered into by a master franchisor and a master franchisee. This agreement essentially gives the master franchisee the right to grant subfranchises to subfranchisees. There are advantages and disadvantages to this type of setup and having experienced legal counsel on your side is essential.
David T. Azrin, Attorney at Law, has been providing franchise law representation to franchisors and franchisees for decades. From his office in New York, he provides legal help to clients across the country and throughout the world. To schedule an appointment, call 212-935-3131.
Advantages Of A Master Franchise Agreement
A master franchise agreement enables a master franchisor to focus its energy on objectives other than expansion. The master franchisee will have a better understanding of a local market and can help expand the business by entering into agreements with subfranchisees. In addition, the master franchisor stands to gain an often substantial initial master franchise fee.
Disadvantages Of A Master Franchise Agreement
Perhaps the biggest disadvantage of entering into a master franchise agreement is that franchise fees and royalties are split between the two parties, rather than the franchisor holding on to all of the financial benefits. A master franchise agreement also requires a franchisor to give up some level of control over the business.
Contact A Dedicated Lawyer To Find Out If This Is Right For Your Business Model
A master franchise agreement can be a valuable tool to expand your business into unfamiliar territories. David T. Azrin can explore your options, draft franchise agreements and help with all other aspects of franchise law. Call 212-935-3131 or complete the online contact form to schedule a consultation.