The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
What’s a development agreement?
John Pratt writes:
It’s an agreement that allocates a specific territory to a franchisee - almost always on an exclusive basis - in which the franchisee is entitled to open a specified number of franchise outlets.
These arrangements have become increasingly popular, especially in the fast food or casual dining sector. Franchisors argue they are better off investing their limited resources in recruiting franchisees who have the desire and wherewithal to open a significant number of franchised outlets, rather than having to deal with individual franchisees. In addition, franchisors believe, with some justification, that the quality of these franchisees is higher than those who only wish to open one outlet.
The challenge for franchisors is not to allocate an exclusive development area to a franchisee who fails to open the required number of outlets. It is for that reason that development agreements will contain a schedule that a franchisee must meet in order to retain exclusivity and thereby open further outlets.
Usually, development agreements are relatively short and are in addition to the more detailed franchise agreement. An area developer then has to enter into a franchise agreement for each outlet opened under the development agreement. Alternatively, in some cases franchisors incorporate the development obligations into the franchise agreement itself, but that is unusual.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in
Answered by Louise Harris
Louise Harris writes: Franchisors will usually have an outline avatar that may include age, skill set, past... read more
Does a franchisor sell its products exclusively through its franchisee network or is it able to make them available elsewhere?
Answered by John Pratt
John Pratt writes: There’s no standard answer to this question because, for instance, a number of well... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: We first need to look at what we refer to as five-star franchising. Is your... read more
Will a franchisor ensure I operate my business within the required health and safety guidelines of the sector I operate in?
Answered by Shelley Nadler
Shelley Nadler writes: The franchisor should provide health and safety guidelines appropriate to the sector the franchise... read more
Exciting Franchise Opportunities
Companies to Consider
In excess of £70,000
Third party and personal investment
Yes, from third party
£600,000 to £800,000
Laser Clinics United Kingdom
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added about 11 hours ago | 2 min read
Added 2 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news