Ohio Area Development Agreement

State:
Multi-State
Control #:
US-2-02-1-STP
Format:
Word; 
Rich Text
Instant download

Description

Area Development Agreement: An Area Development Agreement is made between an Owner and Area Franchisee. The Owner desires to expand and develop the Franchise Business and wishes to allow the Area Franchisee the use of the Owner's established franchise name and likeness to accomplish the Owner's goal of expansion. However, the Area Franchisee must adhere to the guidelines listed in this agreement. This form is available in both Word and Rich Text formats.
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How to fill out Area Development Agreement?

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FAQ

When it comes to structuring franchise arrangements, there are typically three different types franchise agreements. Single-Unit Franchise Agreement. ... Area Development Agreement. ... Master Franchise Agreement.

Two very familiar examples of master franchises are Midas® Mufflers and Burger King® restaurants. There are, of course, other businesses that are considered master franchises. A master franchise is different from a regular franchise.

A master franchise is a franchise relationship in which the owner of the franchise brand (the master franchisor) grants to another party the right to recruit new franchisees in a specific area.

The Drawbacks In this scenario, franchisors often have less control over their franchises after a master franchisee comes into play as their responsibilities would also be delegated away. This could potentially result in brand dilution and inconsistent service standards.

Area franchise means a contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for consideration given in whole or in part for such right, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor; unless specifically stated otherwise, ...

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.

A development agreement is a legally binding contract between a property owner or developer and a local government, often including terms not otherwise required through existing regulations.

One popular business model is master franchising. Under a master franchise agreement, the master franchisor grants to the master franchisee a specified area where the master franchisee has the right not only to open franchise units itself, but also to ?sub-franchise? to third parties.

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Ohio Area Development Agreement