Does anyone have experience with franchise area development agreements?

searcher profile

October 29, 2021

by a searcher from University of Illinois at Urbana-Champaign in Dallas, TX, USA

I am considering signing an area development agreement with a well-known automotive service / repair brand. The agreement would give me exclusive rights to what I believe to be a very favorable demographic region in exchange for committing to open multiple locations (5+) over a period of 5 years. Please note that I cannot be forced to open a unit, I just lose market exclusivity if I fail to meet the development schedule. I think this is a good opportunity for me but I would love to hear from any searchers who have signed an area development agreement. I would also love to hear from anyone that has experience with automotive service / repair franchises. Thanks in advance!

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commentor profile
Reply by a searcher
from Liberty University in Roseville, CA, USA
I don't have the experience, but I know someone who has extensive experience in franchising (he's been a franchisor, a franchisee, he's developed franchise concepts, etc.). He's also a lawyer. I don't know his current availability but I can find out if you're interested in an appointment with him.
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Reply by a searcher
from University of Illinois at Urbana in Dallas, TX, USA
Dzmitry, thanks for the feedback. I am an attorney and have read the ADA and FTA a few times now. I feel pretty comfortable with the agreements but I am also going to retain an attorney specializing in franchise law to confirm I am not missing anything.
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