Document background
The Master Franchise Contract serves as the foundational document for expanding franchise systems into new territories through a master franchisee structure under German law. This agreement is typically used when a franchisor wishes to expand into a new geographic region while delegating the responsibility for territory development and sub-franchise management to a local partner. The document incorporates essential elements required under German commercial law, including detailed provisions for pre-contractual disclosure, competition law compliance, and intellectual property protection. It establishes the master franchisee's rights to grant sub-franchises, sets development schedules, defines fee structures, and outlines quality control mechanisms. The agreement must comply with German civil code (BGB) requirements while maintaining the franchise system's international standards and protecting the franchisor's interests across multiple tiers of franchise relationships.
