Have You Ever Thought About Becoming An Area Developer?

Becoming an Area Developer is a great option for someone who is the right type of person to being involved in Franchising. Are you curious about what it would be like to become an Area Developer? If so here’s what to keep in mind to be a solid candidate:

  • An area developer has a high level of management or significant entrepreneurial experience.
  • Understands the power of building a brand.
  • Forges the relationship on a local basis as a mentor when the franchisor corporate location is a significant distance away.
  • Clearly successful in a leadership capacity.
  • Relishes the importance of being a consistent cheerleader and encourages collaboration frequently.
  • Effectively serves in a consultant capacity but also can transition into a coaching role when the need develops.

What are the typical responsibilities of the Area Developer?

  • To open and operate a minimum of one (1) territory or location to use as a flagship or showcase operation for future prospective franchisees to visit.
  • To develop a specific number of territories or locations, either by opening and operating or selling those “units” to other single and multi-unit franchisees, depending on the specific opportunity.
  • To monitor the performance and progress of franchisees awarded the right to operate using that system.
  • To promote the benefits, competitive features and value propositions established by utilizing the procedures of the corporate team.

This provides only a quick glance at some of the more common provisions regarding an Area Developer franchise opportunity.  Full details would be provided via direct interaction and within the brands FDD.

What should you expect to gain as a Area Developer?

You should expect to share in the initial franchise fee paid; typically a 50/50 split + a portion of the on-going monthly royalty revenue generated, thereby incentivizing you to help drive greater results for those operating in your area to higher gross revenue.

The development area could provide anywhere from 10 to even more than 50 territories; simply depends on the financial investment you are comfortable making. Most Area Developers will be awarded a contiguous boundary based area.

Each territory or location will have either a radius or population count to define and give development protection to.

  • The AD is given a performance schedule to adhere to.
  • The AD may sell or open locations to meet it’s performance obligations.
  • AD Income opportunities will be provided via their FDD
  • Most AD Agreements are offered as ten (10) year agreements with some type of renewal options.

The financial advantages of becoming an Area Developer are significant. If this possible investment approach piques your curiosity please contact me to further evaluate and explore what may be a strong fit to helping you reach your investment and lifestyle goals.