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