Glossary · Doing the deal
In short
A type of franchise agreement where a franchisee is granted the right to develop and sub-franchise a brand within a specific territory, acting as a mini-franchisor. This is a complex deal structure.
If you're buying a master franchise, you're not just buying a single unit; you're buying the rights to sell multiple units to others. This significantly changes your due diligence and financial projections. Lenders view these deals as higher risk due to the added complexity and reliance on sub-franchisee performance.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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