Master franchise contract
This contract is a franchising contract whereby a company (the Master Franchisor the owner of the trademark) grants another (Master Franchisee) the right to exploit and assign franchises on an exclusive basis, creating a franchise units network in a specified territory, generally a region of a country (or an entire country), where the Master Franchise has its corporate headquarters. This contract model is very well suited for the expansion of a franchise business, both nationally as well as internationally given the fact that the Master Franchisee is very knowledgeable of the market assigned to it and has contacts to develop a network of sub-franchise establishments. In the event that the Franchisor wishes to control all the franchises that it grants, the Individual Franchise Contract must be used. The Master Franchise contract regulates the most important aspects of the relationship between the Franchisor and the Master Franchise, such as exclusivity, the franchise network, the fees to be paid, the supply of products, the price policy or the non-competition covenants. Likewise included are annexes with additional information on the intellectual property rights (trade names, trademarks), description of the products and general terms and conditions of sale. Model of Master Franchise Contract.