Nebraska Area Development Agreement
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How to fill out Area Development Agreement?
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FAQ
While a franchisee may over time acquire multiple locations, an Area Developer (more properly called a Multi-Unit Developer) enters into the franchise relationship with a plan to develop multiple locations.
The area developer would be trained and supported by the franchisor and required to open a certain amount of locations within a certain territory and in a certain time frame. Panera Bread® is an example of a franchise that has expanded through area development.
With this agreement, the franchisor ensures that no other franchisee can open a franchise within the same area while your contract is still active. The required development fee is usually non-refundable. A pro-rata basis is also applied when computing for the unit franchise fees of the succeeding franchise units.
The Local Option Municipal Economic Development Act (LB840, 1991) authorized incorporated cities and villages ? if approved by local voters ? to collect and appropriate local tax dollars, including sales and/or property tax, for economic development purposes.
Development agreements provide public agencies greater flexibility in imposing requirements on proposed development, such as development conditions, exactions and fees, because constraints and uncertainties that affect a local agency's ability to unilaterally impose such requirements do not apply to mutually agreed ...
How do I know if I am in an ERA? ?ERA? stands for ?economic redevelopment area.? This means an area in the State of Nebraska where unemployment is at least 150% of the statewide average and where the poverty rate is 20% or more, as determined by federal census data.
The primary benefits from an Area Developer program include an acceleration of income to the franchisor, faster growth, and additional support. Perhaps the most appealing aspect of an Area Developer program is acceleration of income.