It’s important to know the difference between these. There is a difference between a master franchise agreement and an area development agreement. First and foremost is the cost to the franchisor. Area developers don’t pay high investment fees. But at the same time, they don’t get a lot of the sub-franchise revenue.
The other big difference is who is responsible for developing regions directly. In most cases that’s the area developer. Support and training are offered by the franchisor. These developers help out because they are required to open some locations in a certain timeframe and in a certain territory.
The agreements cover different responsibilities. The area representatives who work under that agreement don’t have any arrangement with the franchisees. Their focus is more on being an area developer.