Franchise Area Development Agreement | USA

FTC regulations require franchisors in the United States to provide all regional franchisor applicants with this Franchise Disclosure Document, so that the applicant can evaluate the business opportunity based on the following information:

• the franchisor's corporate structure and history,
• the business experience of the principals of the franchisor,
• any current or potential litigation involving the franchisor,
• regional franchise fees and other fees to be paid by the regional franchisor,
• restrictions on sources of products and services, and restrictions on what the regional franchisor may sell,
• the regional franchisor's obligations,
• assistance and training programs offered by the franchisor,
• trademarks, patents, copyrights and proprietary information of the franchisor,
• provisions for renewal, transfer and termination,
• dispute resolution,
• financial statements and information.

The USA Franchise Disclosure Document for Regional Franchisors template includes a list of addenda for State-specific requirements. Purchase and download your copy now.

Appoint a regional team manager to provide support services to your franchisees with this USA Franchise Regional Team Manager Agreement.

• The regional team manager is not hired as an employee. He/she must run a franchise in the designated territory for at least one month prior to being appointed as regional manager, and must continue to operate the franchise during the term of the agreement.
• The regional manager is not on salary, but instead is paid a percentage royalty for each franchisee in the territory.
• The Agreement will terminate if a specified number of franchisees transfer or fail within the territory in any 12 month period.
• The regional manager is responsible for providing a sufficient number of agents to service all of the franchisees. If franchisees are not receiving adequate support, the franchisor will assist them and invoice the regional team manager for services provided.

Appoint regional sub-franchisors for a restaurant chain in the United States with this USA Regional Sub-Franchise Agreement for Restaurant Franchise.

• The regional sub-franchisor will develop and manage franchisees in a designated area and provide them with support services, such as business consultation and advice, assistance in acquiring a location, lease negotiations, construction coordination, marketing advice, implementation, and training.
• The sub-franchisor will pay a non-refundable sub-franchise fee.
• The sub-franchisor will have the exclusive right to act as sub-franchisor within the designated territory.
• The franchisor grants the sub-franchisor the right to use its trademarks and logos, and will provide training and materials.
• The franchisor will pay all bills and invoices owing to the sub-franchisor.