Master Franchise Agreement primarily covers the appointment of a master franchise holder or a master franchisee, who is granted an exclusive right to operate a franchise and to grant (or sub-franchise) other franchises within a territory.

This Agreement creates the first tier in a two-tier structure which envisages (1) the franchise owner granting rights to (2) the master franchisee who then grants similar rights to (3) franchisees or developers. The master franchise territory will often be in a different jurisdiction from that of the franchisor, because the franchisor may lack experience of doing business in that jurisdiction.

The agreement will cover cross-border, and where the law of another jurisdiction other than Singapore is the governing law, then advice from local lawyers may be required.