http://www.lbcfranchisingcorp.com Connecting People and Ideas Tue, 26 Oct 2010 16:04:20 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://www.lbcfranchisingcorp.com/blog/everyone-wants-subway#comment-4 terry Tue, 26 Oct 2010 16:04:20 +0000 http://stage.lbcfranchisingcorp.com/?p=62#comment-4 What you are referring to is an Area Development Agreement. In that case, a franchisee signs an agreement to build a defined number of units over a defined time period. They own the units. Master franchising is a higher level of Regional Development. Typically a master franchisor is a sub franchisor of the concept. Regional Developers purchase the rights to develop a concept in a defined territory (in my case I am developing a concept in the state of Oregon for example). RDs (as we are called) earn income by sharing the initial franchise fee and a percentage of royalties. The better the units perform, the more income that can be earned from royalties. In the ideal franchise, the ZOR (as they are called), relies on royalties as a primary revenue stream. When this is the case, we typically see the focus on helping the individual Zees (as they are called) thrive. With this as the focus.....everyone should win. What you are referring to is an Area Development Agreement. In that case, a franchisee signs an agreement to build a defined number of units over a defined time period. They own the units.
Master franchising is a higher level of Regional Development. Typically a master franchisor is a sub franchisor of the concept.
Regional Developers purchase the rights to develop a concept in a defined territory (in my case I am developing a concept in the state of Oregon for example). RDs (as we are called) earn income by sharing the initial franchise fee and a percentage of royalties. The better the units perform, the more income that can be earned from royalties. In the ideal franchise, the ZOR (as they are called), relies on royalties as a primary revenue stream. When this is the case, we typically see the focus on helping the individual Zees (as they are called) thrive. With this as the focus…..everyone should win.

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