A Master franchisee is the individual who negotiates the franchise rights for a defined territory (usually a country), and assumes the rights and obligations of the franchisor in that particular territory. The master franchisee purchases the rights to sell franchises to sub-franchisees, and provide them with some of the services provided by the franchisor. The master franchisee pays the franchisor both initial and ongoing fees based on the number of franchisees operating in the territory. Master franchising is most common in international franchising.
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