Area Development

Bild: Area DevelopmentAMB® grants Area Development contracts for Germany!

Area Development (Regional Development) is, next to Master Franchising, another variant of launching a franchise system in a given country. In contrast to the master franchising where, more often than not, the entire country is assigned as an area, the Area Development Agreement applies to a pre-defined area in a country like a single state or district.

The duties of Area Developers are dependent on franchise-system and franchise agreement, similar to that of the master franchisee.
Like the master franchisee, the Area Developers duties are dependent on franchise-system and franchise-agreement.
The Area Developer conducts his own pilot-operation in his territory and tries to gather more franchisees. These franchise partners settle franchise contracts with the franchiser, and are trained and supported by the Area Developer. Hence the Area Developer is an extension and the flagship of the franchisor in his area.
To become an Area Developer, in addition to the necessary qualifications, also a corresponding equity capital is required. An entry fee is to be paid, in return for entrust of the brand and know-how for the defined area.
To establish the AMB® method on the German market, and at the same time being able to best serve the customers, AMB® has decided to grant Area Development contracts for the individual German states, or parts thereof.
In contrast to master franchising, the entry to Area Development is less costly, due to the smaller area, more predictable, easier to manage and less risky.
Of course an extension for the acquisition of other areas is also possible at a later point.