area representative

A type of franchisee that can own and operate franchise outlets, represent the franchisor in selling new franchises, and provide on-going local support to existing franchisees in a designated market. The area representative normally receives a portion of the royalty fees (and possibly the up-front franchise fee) payable by the franchisees to the franchisor. Area representatives may operate in a variety of geographical configurations, including metropolitan areas, a single state, or a combination of states. The area representative is not a party to the franchise agreement, which is between the franchisor and the franchisee. See, for comparison, “Master Franchisee.”

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