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Help Franchise Finance · Adding units and territories What is a master franchise, and how is it funded?
Help guide · Franchise Finance · Adding units and territories 2 mins read

What is a master franchise, and how is it funded?

A master franchise gives you the rights to develop a brand across a whole region or country. Instead of running one unit, you recruit, train and support your own franchisees there, and you often run some units...

A master franchise gives you the rights to develop a brand across a whole region or country. Instead of running one unit, you recruit, train and support your own franchisees there, and you often run some units yourself. It's usually a much bigger commitment than a single franchise.

How it differs from a unit franchise

  • You act as the franchisor in your territory, earning fees from the franchisees you recruit.
  • You commit to a development schedule, such as opening a set number of units by set dates.
  • The upfront fee for the territory rights is usually much higher.

How master franchises are usually funded

  • Mostly equity: your own money or investors, because the income takes time to build.
  • Business finance, once there's a trading pilot unit or a network to lend against.
  • Asset finance for equipment in units you run yourself. See How do I finance a van or equipment for a franchise?.

Lenders can find a new master franchise hard to fund at the start, because the income depends on recruiting franchisees who don't yet exist.

Before you commit

  • Check the brand's results in its home market, and whether it's been tested in the UK.
  • Make sure the development schedule is realistic, and know what happens if you miss it.
  • Use a franchise-specialist solicitor and accountant.

Last reviewed: 8 October 2026

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