A development agreement is a contractual arrangement between a franchisor and a franchisee, granting the franchisee the exclusive right to develop a specified number of franchise units within a defined territory over a certain period. This model is commonly used in multi-unit and area development strategies. The agreement outlines deadlines, performance expectations, and penalties for non-compliance. It allows franchisors to strategically grow in target markets while giving developers the opportunity to scale operations and secure exclusive rights within a region.
Development Agreement
This term
A development agreement grants rights to open multiple franchise units within a set time and area.
Joe Bailey
Lead Franchise Advisor & Owner
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