Franchise Construction Administration Agreement | USA

Set some restrictions on your franchisees with respect to the operation of the franchise with this Restrictive Covenant Agreement.

• The franchisee agrees not to compete with the franchisor within the territory for a specified period of time.
• The franchisee has a fiduciary duty to the franchisor.
• Confidentiality provisions to protect the franchisor's trade secrets and proprietary information.
• This is a generic legal form (not country specific).
• Easy to customize to fit your business model.

Regional franchisors can sign up new area developers in a designated territory with this customizable Franchise Area Development Agreement for U.S. franchises.

What is an area developer?

The area developer is an independent contractor, whose main responsibility is to develop new franchises on behalf of the master franchisor within the assigned territory.

Key Provisions of the Agreement

• The regional franchisor grants the area developer a license to use the master franchisor's systems and business marks within the development area.
• The area developer must pay a non-refundable area development fee, calculated based on the number of franchise locations established within the territory.
• The area developer must enter into a franchise agreement for each franchised business established within the development area. The developer is responsible for locating and securing acceptable sites for each business.

Right of First Refusal

The regional franchisor is granted a right of first refusal if the area developer wishes to sell all or part of its assets and business.

Non-Competition

The area developer agrees not to compete with the business of the master franchisor during the term of the Agreement and for two years afterward.

Format and Jurisdiction

This Area Development Agreement is available as a downloadable and fully editable MS Word template from MegaDox.com. It is intended to be used only within the United States.