What You Need To Know About Area Developers

Let’s say I had the idea of launching a fast casual restaurant brand, and named it “Rapid Fired Pizza.”

Let’s also say you kept an eye on my brand for a few years, and determined it was a true success story:

●      It can make an amazing pizza in 180 seconds

●      It has a loyal and loving fanbase

●      It features build-your-own creations to suit any palette

You look around... you’re a library archivist in Charlottesville, Virginia. You work a reliable gig, but yearn for something more… something tastier… like running your very own restaurant!

Well, as a potential franchisee, you’ve got an option: you can get in touch with me—the franchisor—because I own the Rapid Fired concept and I’m always on the lookout for people like you, who are hungry to build new locations.

So, you agree to faithfully replicate my concept, pay me a fee for the opportunity, and we’re off to the races. You’re now a full-fledged franchisee; you have your own restaurant, and I’ve grown my brand.

But, let’s say someone else—like your sister—is more ambitious. She doesn’t just want one Rapid Fired franchise in Charlottesville, Virginia—she wants three Rapid Fired franchises across Virginia. So, she comes to me, and I learn that she’s done this before—in other states. In fact, she has an exclusive deal to develop Subway restaurants in Maryland.

Your sister knows what she’s doing. She’s got business experience, and is better capitalized than you, because she’s been successful.

I agree to make her an area developer for Rapid Fired Pizza restaurants in Virginia.

●      She gains the exclusive right to develop my restaurant concept throughout the state

●      You will be working for her, so there are no territory issues

●      In return, she signs a contract that obliges her to open five Rapid Fired restaurants in two years

Because your sister was born-and-raised in Virginia, and has traveled the state for years, she knows a lot about the local culture. She knows where a Rapid Fired Pizza location will likely succeed—based on demographics, competition, and local preferences. I don’t have to do all that research in a place I don’t understand, and my brand awareness spreads across Virginia.

●      Your sister and I share a cut of profits from all the new restaurants she opens

●      She’s responsible for hiring people to run them, and for assuring their commitment to my plan

●      In short, your sister is now an area developer in charge of my restaurant concept in Virginia

As a franchisor, I’m willing to accept the risk of securing an area developer, to realize the potential benefits of greater revenues, accelerated growth, and additional support. If it all works out, we all succeed together!