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The Franchise Development Agreement is essential when a franchisor wishes to expand their franchise network through a developer who will establish multiple units within a defined territory. This agreement, governed by English and Welsh law, differs from a standard franchise agreement as it focuses on the broader development rights and obligations rather than individual unit operations. It typically includes development schedules, territory definitions, fee structures, and performance requirements. The agreement must comply with UK competition law, trademark regulations, and relevant franchise industry standards, while protecting both parties' interests in the systematic expansion of the franchise network.

1. Parties: Identification of franchisor and developer, including registered addresses and company numbers

2. Background: Context of the agreement, nature of the franchise business, and development rights being granted

3. Definitions: Key terms used throughout the agreement including Development Rights, Territory, Development Schedule, etc.

4. Grant of Development Rights: Scope of development rights, exclusivity provisions, and territorial restrictions

5. Development Schedule: Minimum performance requirements, opening schedules, and development milestones

6. Fees and Payments: Development fees, franchise fees, royalties, and payment terms

7. Developer Obligations: Core responsibilities including site selection, construction, and compliance requirements

8. Franchisor Obligations: Support, training, and assistance to be provided by franchisor

9. Intellectual Property: Usage rights and restrictions for trademarks and system property

10. Term and Termination: Duration, renewal rights, and grounds for termination