Regional Franchise 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.

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.

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.