As you will be assuming the role of the franchisor, you will incur three sets of costs when you buy a master franchise:
Take into account the actual cost to the master franchisor of dealing with you on an initial and ongoing basis, helping you to set up the business and proving the concept and finally, providing ongoing support.
Other cost factors you need to take into account include:
Seek maximum flexibility over the payment of initial fees, for example in the form of staggered payments linked to the rollout of the franchise.
Negotiate an equitable split of ongoing fees and/or mark-ups on the products or services the business sells.