an area development agreement is a an

agreement that gives a franchisee

the right to develop multiple units

within a specific territory it’s

actually sometimes referred to as a

multi-unit development agreement and

what it does is it says that the

franchisee can open a defined number

agreement it may be a number of

franchises it may be three it may be ten

maybe it may be more there’s usually a

schedule that says you’re going to open

one every six months every eight months

whatever it’s going to be and there is a

defined territory that territory could

be a county it could be uh you know a

local area it could even be a state but

it defines where the franchisee can open

it includes the schedule and it gives

the franchisee the right to open

multi-units or multiple units within

that territory