A master franchisee is a franchisee who has obtained the right to develop an area assigned to him or her for a fee and based on certain agreements. This development happens, among other things, by growing the number of branches by issuing sub-licenses to franchisees who operate one or more branches.
This construction enables the master to grow to a substantial size in a relatively short time. The advantage for a franchise brand is that, provided they are sufficiently equipped for this, they can quickly grow in different markets using local knowledge.
Almost always a one-off fee (entrance fee) has to be paid in order to be allowed to start and there is a turnover-related payment (Royalties) for the use of the system (operating system) and the brand. There may also be a contribution to the marketing costs.