Franchise Area Development Agreement | USA

This customizable Franchise Agreement template is between a regional subfranchisor and a new franchisee applying for a US franchise.

Parties to the Agreement

The regional subfranchisor acts as the franchisor’s agent within the specified development area, to recruit, screen and train new franchisees.

Under the terms of this Franchise Agreement, the regional subfranchisor grants the new franchisee the right, license and operation to operate a franchise at a specified location within the development area.

Amounts Franchisees are Required to Pay

The franchise agreement requires franchisees to pay:

• the initial franchise fee,
• a weekly royalty based on gross sales, and
• a monthly advertising fund fee.

What is Included in This Document Package

This is a comprehensive 50-page franchise agreement template which includes the following items:

1. Franchise Agreement,
2. Glossary of Terms,
3. Summary of Information concerning Franchisee and the Franchise,
4. Personal Guarantee and Agreement to be Bound by Terms,
5. Confidentiality and Non-Competition Agreement,
6. Conditional Assignment of Telephone Number,
7. Acknowledgment of Franchisee.

Format and Jurisdiction

The document package is available in MS Word format and is fully editable so that you can easily tailor it to your exact needs. The Agreement is governed by U.S. laws and is intended for use only within the United States.

Appoint regional franchisors and set up regional franchises within the U.S. with this comprehensive Regional Franchise Agreement template.

Responsibilities of the Regional Franchisor

• A regional franchisor is responsible for supporting franchisees and growing their region by selling franchises.
• The regional franchisor will recruit, screen, train and assist franchisees who will open and operate new franchise locations.
• Regional franchisors must meet a minimum investment obligation and pay a franchise advertising fee into a regional co-op advertising fund.

Exclusive Territory

Each regional franchisor will operate on an exclusive basis within a clearly specified development area.

Jurisdiction and Format of Template

The agreement template is available in MS Word format and is fully customizable to meet your needs. It is governed by U.S. franchise laws and is intended for use only by franchises operating in the United States.

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.