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Master franchise agreement

We regularly see the master franchise agreement in an international context.

We regularly see the master franchise agreement in an international context. The (often foreign) formula wants to enter Europe and grants a so-called master licence per country (or sometimes per part of a country) to a local party. This party acquires the right (and the obligation) to open its own branches and/or appoint franchisees.

Master franchise agreements are hefty contracts, even if they are set up on behalf of a Dutch chain in the context of the internationalisation of formulas. A large number of agreements are bundled in this agreement.

The own branches but also the growth with new franchisees and the branches to be operated by franchisees are discussed. Location studies and key figures from other countries are often appendices to the master franchise agreement. Training programmes and regular visits to other branches are part of the compulsory programme. Substantial investments are made at the start, which also makes it clear how important the underlying agreements are.

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