We may be all knowledgeable about franchises that are created in a single location commonly called a single-unit franchise. If the franchiser wishes to open another one in another location he needs to apply again for a new franchise and setup in another location. Separate single-unit franchise agreements will be outlined for the franchiser in order to have as many different branches that he may want. There must be a one to one correspondence on the number of branches with the number of agreements.

Master franchising, however, sets a different means of doing franchising businesses compared with single-unit franchising. In this way, the franchiser can have the opportunity to create a franchise territory of his own which may be a city, a whole state or a group of neighboring islets. With this technique, the franchiser does not have to do over and over again the method of applying for a new franchise as long as he creates a branch in his marked territory.

Master franchising is also a first step taken towards international franchising. It is a mode of business expansion that requires the right plan and people to make it become a success. Commitment is a very important requirement in master franchising and once you have decided to take this step, there is no way of abandoning it and going back without hurting your business. So before you completely decide to make the move, assess if the business really wants you to go territorial or even, international.