The master franchise is a type of franchising that involves three levels of participants: the franchisor, the master franchisee and de franchisees. Typically, the master franchisee will pay an initial fee and agree to a minimum development schedule. The master franchisee will benefit from a designated territory, the right to open and operate units directly and the right to grant third parties the right to open and operate units. This type of relationships is often well suited for international markets, as the master franchisee is often far more knowledgeable and connected in the culture and business of the designated country or countries. See international franchising. Model of Master Franchise Contract.