Thank you for your interest. Non-United States franchisees should contact our international development office directly at [email protected]. Please see below for frequently asked questions for Non-United States-based store operations.
What is a Master Franchise?
A Master Franchise is an agreement whereby the Franchisee is licensed to operate retail stores within a designated territory for which they have exclusive rights.
What kind of stores can be operated?
The agreement defines 4 different store categories or types which the Master Franchisee is licensed to operate:
• Enhanced stores (larger stores with seating)
• Standard stores
• Mini stores
• Carts
How many stores must be opened?
A Development Schedule is included in the agreement that notes the number of store units that must be opened each year and continuously operating.
What is the term of the Master Franchise Agreement?
The initial term is for 10 years, with a 10-year extension option.
What payments are required?
• Good Faith Deposit — paid upon execution of a Letter of Intent
• Territory Fee — paid upon execution of the Master Franchise Agreement, less the good faith deposit already paid
• Royalties — paid monthly 6 % of gross sales of all stores within the territory
• Store Opening Fees — paid upon the opening of each new store
Does the Master Franchisee own all the stores that are developed?
The master franchisee may own and operate stores, and has the right to sub-franchise stores under certain conditions.
Is there a maximum number of stores that may be approved to be opened?
No, the only limitation on stores is the total number of potential locations available in the territory itself. The Agreement sets no upper limit.
What capabilities must a Master Franchisee have?
• Maintain a strong commitment to the brand
• Ability to operate stores at a high standard
• Expertise and contacts in real estate throughout the territory, to ensure that a maximum of good store locations can be secured
• Ability to develop management infrastructure to support and oversee a large number of stores
• Excellent knowledge of the territory’s markets to ensure the brand is presented in the most appealing manner to potential customers
• Financial resources necessary to develop the territory
