Model revenue generation, upfront unit franchise fee distributions, and monthly royalty splits between the Parent Brand and Regional Master Franchisees.
Master Franchise Revenue Architecture
A Master Franchisee acquires the rights to sub-franchise and develop a designated state or region. Income is generated through two streams:
Unit Franchise Onboarding Fees: Split between Brand and Master (commonly 50:50 or 60:40).
Ongoing Monthly Royalties: A share of the 5%–8% royalty collected from every operating outlet in the territory.
Standard Indian practice splits unit franchise sign-up fees 50:50 between the Brand and Master Franchisee, and recurring monthly royalties 60:40 (or 50:50).
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The Master Franchisee handles local marketing, site approvals, franchisee onboarding, operational audits, and local staff training for all outlets in their territory.