What is master license?

A master license is a type of license that grants the holder the authority to sublicense or distribute a specific product or service to other individuals or businesses. This type of license is often used in the franchising industry where a company grants a master license to a third-party entity to operate multiple franchises in a specific region or country.

Having a master license allows the holder to expand the reach of the product or service in a particular area without having to directly manage all the individual franchises. The holder of a master license typically receives a percentage of the revenue generated by the sublicensed franchises.

Master licenses often have specific terms and conditions set by the company granting the license, including fees, performance targets, and branding guidelines. It is important for the holder of a master license to adhere to these terms to maintain a successful business relationship with the company granting the license.