A master franchise agreement is a legal contract between a franchisor and a master franchisee, granting the master franchisee the exclusive rights to develop and sub-franchise the franchisor’s brand and business model within a specific territory. This agreement allows the master franchisee to act as a mini-franchisor, recruiting and training sub-franchisees and overseeing their operations, while also providing ongoing support and guidance. In return, the master franchisee pays a fee to the franchisor and shares a portion of the sub-franchisees’ royalties. This type of agreement is beneficial for both parties, as it allows the franchisor to expand their brand globally while minimizing risk and costs, and the master franchisee to build a successful business by leveraging the established brand and support of the franchisor.