Questions about the international expansion of franchise systems
In this section, experts answer the questions most commonly asked about the requirements, methods and difficulties of expanding a franchise abroad.
What is master franchising or sub-franchising?
This is a form of franchising whereby the franchisor grants another natural or legal person, known as the master franchisee, the right to operate a franchise in a major territory (a country for example). The franchisee is then expected to agree franchise agreements with other individual franchisees. The master franchisee thus acts as a franchisee vis-à-vis the original franchisor and usually plays the role of franchisor with regard to the individual franchisees recruited. This position is comparable to the role of importers or wholesalers.