Area Representative Agreements relate to the designation of an “area developer” for a proscribed territory. Area Representatives do not typically establish or operate their own individual Franchise units outside of perhaps one unit that may double as a training facility but, rather, sell individual unit franchises to prospective franchisees within the Area Representatives proscribed territory. It is very common that an Area Representative will train franchisees within the proscribed territory and monitor franchisee compliance on behalf of the franchisor. Simply put, the Area Representative is a commissioned sales and field support person for the franchisor who shares in a portion of the royalties collected from the franchisees in the Area Representative’s territory.
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