Free investor tool
Master Franchise Valuation Estimator
Model the two income streams of a master franchise — franchise-fee income and your share of ongoing royalties — and see an indicative value of the master rights, live.
What is a master franchise?
A master franchise gives an investor the exclusive right to develop a brand across an entire country or region — recruiting and supporting sub-franchisees, and sharing in the franchise fees and royalties they generate. In exchange, the master franchisee pays a significant upfront territory fee and commits to a development schedule. It is the most capital-intensive but potentially most valuable way to enter franchising.
Your deal assumptions
Typical master agreements run 10–20 years
Your committed development schedule
Expected yearly sales of a typical unit
$500k
% of unit revenue paid as royalty
Your split of each royalty dollar; the rest goes to the franchisor
Upfront fee each sub-franchisee pays
$30k
Your split of each unit's franchise fee
Multiple applied to steady-state royalty income (3×–8× is a common indicative range)
Indicative results
Total franchise-fee income over term
$450k
Units × fee per unit × your share (undiscounted)
Steady-state annual royalty income
$450k
At full build-out: units × revenue × royalty % × your share
Indicative value of master rights
Indicative$2.7M
Steady-state royalty income × multiple + remaining fee income (undiscounted)
Build-out ramp
This model assumes linear unit openings — roughly 3 units per year over 10 years. Real royalty income ramps up gradually and only reaches the steady-state figure at full build-out.
⚠️ Important disclaimer
This is an indicative educational estimate only — not a valuation, financial advice or investment advice. Real master-franchise deals require full financial modeling (discounted cash flows, ramp-up, churn, taxes) and legal review by qualified professionals before any commitment.
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