Vermont Area Development Agreement
Description
How to fill out Area Development Agreement?
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FAQ
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.
These agreements include site plan and subdivision agreements, bonusing (section 37) agreements, front-ending agreements, easement agreements, and conditional building permit agreements, and relate to the provision of municipal services and infrastructure, amongst other things.
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.
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.
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.
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 ...