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Franchise Development Alternatives

Area Development Agreements, Master Franchises

Multiple Options to Expand Your Franchise System

At Fahey Schultz Burzych Rhodes PLC, we understand the desire to expand a franchised business. That is why we take the time to understand your system, your growth strategy, your growth goals, and objectives in designing your franchise growth strategy.

Your franchised business has many options for expansion into new markets. Whether your development goals are best achieved by selling single unit franchises, area development agreements, or area representative agreements, we will help you design the best development program for your system. They may seem to blend together, but we will help you by identifying your needs. 

Is your business ready to franchise? Download our free guide, 10 Questions Before Franchising Your Business to find out.


Area Development Options for Franchisors

Single Unit Franchise Agreements

Circumstances

  • Franchisor enters into agreement for a frachisee to open one franchise unit in a limited geographic territory
  • Franchisee represents brand in that limited area
  • Franchisee operates system at that one location

Benefits

  • Franchisor controls development in market
  • Franchisee capital requirements lower
  • Easier sales process
  • Training more streamlined
  • Franchisor has opportunity to watch franchisee operate system


Area Development Agreement

Circumstances

  • An area developer enters an agreement with a franchisor to develop a certain number of units in a market in a designated amount of time
  • The area developer is not allowed to sell franchises
  • An area developer must follow a development schedule to maintain control of their designated area

Benefits

  • Concentrated and accelerated development schedule in market through one developer
  • An area developer will be consistent and experienced through opening multiple franchises
  • Unit training easier with same operative


Area Representative

Circumstances

  • Franchisor enters into an agreement with an Area Representative
  • Area Representative can sell single or multi-unit franchises
  • Area Representative acts as a business consultant or coach to its sub-franchises
  • Area Representative recruits and trains single unit franchisees in market
  • Single Unit franchisees can enter into agreement with Franchisor or Area Representative depending on Franchisor's goals
  • Area Representative receives part of initial franchise fee and part of ongoing royalty

Benefits

  • Franchisor may benefit from a Area Representative's knowledge in a particular geographic area
  • Franchisor collects franchise fees from Area Representative as well as its sub-franchises
  • Area Representative controls market
  • Franchisor recruitment, training and inspection obligations assigned to Area Representative

What Our Franchise Clients Are Saying

"Trustworthy, experienced, protective, and insightful are words I would use to describe Mr. Burzych and his law practice. Mr. Burzych was instrumental in helping us at BD's Mongolian Grill to develop and grow our franchise business. I highly recommend Mr. Burzych for all franchise and general business-related matters."

- Billy Downs
BD's Mongolian Grill & Mongo Consulting, L.L.C.

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Where to Start With Franchise Development Alternatives

Not sure where to start? The franchise attorneys at Fahey Schultz Burzych Rhodes can review your business plan and provide legal guidance based on your current situation and your long term goals.

If you have any questions regarding the best course of action, please request a franchise consultation with one of our attorneys. 


Ready to Take the Next Step to Expanding Your Franchise?

 

Request a Franchising Consultation »

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