What Are Franchise Area Development Rights?

Franchise area development rights are granted to franchisees who are known as “sub-franchisors”, “area representatives” and “master franchisees”. There may be other terms but area development rights exist when a franchisee is given the right to develop multiple franchise locations within a designated territory. Depending on the contract these multiple units may be operated by the same franchisee or other franchisees.

If you are a prospective franchisee and are considering the purchase of “area development rights” there are key protections that you need to be aware of. If you are a franchisor interested in selling area development rights then you must ensure that your FDD permits same. To learn more about area development rights and how Mr. Internicola develops area development programs, contact his staff at (800) 976-4904.