FRANCHISE: International master franchise agreement

Whether the sub-franchise period can be longer than that of the master franchise with the international franchisor is a matter of agreement with the franchisor, and should be clearly indicated on the agreement. Remember, the franchisor’s brand comes first and whether the current master franchisee is the same one or a different one in future, the brand should not be adversely affected. Should a master franchise be terminated midstream, the international franchisor has the responsibility to protect the brand by either taking over the territory and running it as they jointly seek a suitable master franchisee with the terminated party or appointing one of the sub-franchisees to take over the master franchise either permanently or on a temporarily as they seek a permanent solution. This has to be agreed at the beginning, and if a re-purchase option by the franchisor is agreed on, the financials have to be agreed upon from the onset.

FRANCHISE: International master franchise agreement

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