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.
Close
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 Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Start your own Dolce Desserts franchise
Yes
Find Out MoreN/A
We're sorry, this franchise is no longer seeking applicants.
Click here to find other Food & Beverage franchisesStart your own Walfinch franchise
Yes
Find Out More£562,073
Request Free Information
Send a free enquiry to Walfinch for further information!
Start your own Chai Green franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Chai Green for further information!
Start your own Cakes & Bakes franchise
Yes
Find Out More£65,000
Request Free Information
Send a free enquiry to Cakes & Bakes for further information!
Start your own Subway Resale Opportunities franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Subway Resale Opportunities for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Why does Mail Boxes Ect. work as a franchise business?
Added about 16 hours ago | 2 min read
-
Women in business: The advice any new franchisee should know
Added 2 days ago | 2 min read
-
Sales Geek: Behind the B2B franchise trying to start a sales revolution
Added one week ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news