Area Development Rights Law and Legal Definition

Area Development Rights means the rights granted to a franchisee to operate a number of franchises within a particular region. Accordingly, it serves as a more efficient way to originate a franchised business in a given trade area than one-by-one sales of unit franchises. Area development rights helps to avoid encroachment, advertising, and intrabrand competitive problems that might otherwise arise if multiple owners develop a single market. Area development rights are attractive for businesses that sustain a salary of an on-site manager and for businesses that is supervised by a franchisee owning multiple units.