Franchise & Licensing
Area Development Agreement
Multi-unit franchise area development agreement covering development schedules, territorial rights, fees, and performance obligations. Two signers (franchisor and developer).
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# Area Development Agreement **Effective Date:** ___________ This Area Development Agreement ("Agreement") is entered into by and between: **Franchisor:** ___________ ("Franchisor") **Developer:** ___________ ("Developer") ## 1. Recitals (a) The Franchisor owns and operates a franchise system (the "System") under the trademarks, trade names, and brand identified herein. (b) The Developer desires to develop and operate multiple franchise units within a defined territory, and the Franchisor is willing to grant such development rights under the terms of this Agreement. (c) This Agreement grants development rights only. Each franchise unit shall require execution of a separate Franchise Agreement. (d) The Franchisor has provided the Developer with a Franchise Disclosure Document ("FDD") in compliance with the Federal Trade Commission Franchise Rule (16 CFR Parts 436 and 437) at least 14 calendar days prior to execution of this Agreement or payment of any consideration. The Developer acknowledges receipt of the FDD and has had the opportunity to review it and consult with legal and financial advisors. In states requiring franchise registration, the Franchisor represents that it has complied with all applicable state franchise registration and disclosure requirements. ## 2. Franchise System **Brand/System Name:** ___________ **Industry/Category:** ___________ **System Description:** ___________ ## 3. Development Territory **Development Area:** ___________ **Territory Definition:** ___________ During the term, and provided the Developer is in compliance with the Development Schedule, the Franchisor shall not grant franchise rights to any other person or entity within the Development Area. This exclusivity does not prevent the Franchisor from: (a) operating national marketing or e-commerce programs; (b) acquiring existing competing businesses within the Development Area; or (c) granting non-traditional venue franchises (airports, stadiums, universities) unless expressly included. **Excluded Locations/Venues:** ___________ ## 4. Development Schedule
Fields (52)
effective date
date · required
franchisor name
text · required
developer name
text · required
brand name
text · required
industry
select · required
system description
textarea · required
development area
textarea · required
territory definition
select · required
excluded venues
textarea
milestone1 date
date · required
milestone1 units
text · required
milestone2 date
date · required
milestone2 units
text · required
milestone3 date
date · required
milestone3 units
text · required
milestone4 date
date
milestone4 units
text
milestone5 date
date
milestone5 units
text
total units
text · required
cure period
select · required
schedule failure
select · required
development fee
text · required
fee payment
select · required
refundability
select · required
fee credit
select · required
unit franchise fee
text · required
royalty rate
select · required
ad fund
select · required
local marketing
select · required
site approval time
select · required
training duration
select · required
field visits
select · required
training cost
select · required
capital required
text · required
financial reporting
select · required
audit notice
select · required
audit limit
select · required
non compete
select · required
non compete radius
select · required
rofr
select · required
transfer fee
text · required
insurance amount
select · required
umbrella insurance
select · required
agreement term
select · required
developer termination
select · required
dispute resolution
select · required
governing state
select · required
franchisor signer name
text · required
franchisor signer title
text · required
developer signer name
text · required
developer signer title
text
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