Master Franchise Agreement (MFA)
Jump to navigation
Jump to search
A Master Franchise Agreement (MFA) is a master agreement that relates to franchise agreements.
- Context:
- It can (typically) grant a Master Franchisee the rights to sub-franchise within a specified territory.
- It can (often) outline the responsibilities and obligations of both the Franchisor and the Master Franchisee.
- It can range from covering a Single Country to multiple International Markets.
- It can include provisions for training and support provided by the franchisor to the master franchisee.
- It can detail the financial arrangements, including royalties and fees, between the franchisor and the master franchisee.
- It can specify the terms for renewal, termination, and dispute resolution.
- It can often require the master franchisee to establish a certain number of sub-franchises within a given timeframe.
- It can outline the branding and marketing guidelines that the master franchisee must follow.
- It can include clauses for quality control and compliance with the franchisor's standards.
- ...
- Example(s):
- an McDonald's MFA granting rights to open and manage McDonald's outlets in a new country.
- an Hotel Chain's MFA allowing a master franchisee to sub-franchise hotel operations in a specific region.
- ...
- Counter-Example(s):
- Single-Unit Franchise Agreements, which grant rights to operate only one franchise unit.
- Area Development Agreements, which allow a franchisee to open multiple units within a territory but do not permit sub-franchising.
- See: Franchise Agreement, Master Franchisee, Franchisor, Sub-Franchisee