A franchise arrangement entered into with a sub-franchisor in order to develop large territories is:

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A master franchise agreement is a type of franchise arrangement where the franchisor grants the right to another party (the master franchisee) to act as a sub-franchisor in a particular territory. This allows the master franchisee to recruit and support its own franchisees in the territory, while paying royalties to the original franchisor. This type of arrangement is common in international franchising or when developing large territories within a country.

A Franchise Arrangement Entered into with a Sub-Franchisor in Order