Franchise Area Development Agreement

Franchise area development agreements are used for offering opportunities to a person to develop a specified amount of franchise businesses in a designated area.

Description

• The individual given this opportunity obtains rights to open and develop these businesses and to find owners for them. The franchises themselves are sold by the franchiser, while the area developer, or franchisee, simply obtains the rights for the businesses to open.

Purpose

• All types of franchise agreements are used to protect designated regions from other franchisers opening businesses in their particular territory. This agreement is specifically for the new development of franchise businesses.

Details

• A franchise area development agreement contains the names of the parties involved, including the franchiser and the area developer. It contains the date, the type and name of franchise business and the precise territory the agreement covers. It also states how many franchise businesses can be developed and opened in the specified region.