Business Agency Sales Agreement for Franchises | USA

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.

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.

USA franchisors, prepare a Confidential Evaluation and Application form for new franchisees with this easy-to-use template.

• evaluating the skills and expertise of the applicant franchisee, based on employment background and management history;
• verifying the potential franchisee's financial resources by performing credit checks and other searches, based on financial information provided;
• assessing the overall business capabilities of the potential franchisee.

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.

Are you planning to franchise your business? Find out if your business model meets the minimum requirements to be a franchisor.

This free checklist sets out the considerations you will need to take into account, including:

• the history of the business and experience of its principals,
• profitability of your business model,
• level of documentation, training and support you're able to provide franchisees.

The free Checklist of Franchisor Requirements was compiled by a franchise specialist.