Document background
The Master Franchise Agreement is a crucial document used when a franchisor wishes to expand their franchise network in South Africa through appointing a master franchisee who will develop and manage the franchise system within a defined territory. This agreement type must comply with South African legislation, particularly the Consumer Protection Act, Competition Act, and various commercial laws. The document comprehensively covers the relationship between franchisor and master franchisee, including territorial rights, development schedules, fee structures, operational standards, and sub-franchising arrangements. It's particularly important for international franchisors entering the South African market or local franchisors implementing a master franchise model for regional expansion. The agreement serves as both a commercial and operational framework, detailing everything from initial setup requirements to ongoing obligations and eventual termination provisions.
