Area development contract is a contract which is made when one party hires the other to develop a particular area. These contracts are formal in nature and are generally enforceable under law.
Sample Area Development Contract
Contract no: – GFD-67/L
This contract is made on 5th November 2009, between great taste coffee (Company) and Promising Enterprise (Developer) under the following terms
- “Great taste Coffee” gives license of all its logos, promos, trademark, and registered logos to the developer company.
- Company intends to expand its business and give franchisee to the Developer.
Permanent address of Company:-
Great taste Coffee
Dallas, United States of America
Permanent address of Developer:-
34/GH, 23rd Turn Road
San Fransisco, United States of America
Terms and conditions:-
- Time and again the Company has the right to ask for the progress report of the business.
- The Developer doesn’t have any right to start a new trademark.
- Developer will have to maintain the standard, quality, brand name, ingredients of the Company.
- Report of the gross sales of Promising Enterprise Is to be given to Great taste coffee without any amendments.
- All the earnings of Developer are their own earnings.
- Great taste coffee has no share in their profits.
- Developer is bound to give the Company 20% of its earnings as it is allowed to use it brand name.
Validation and Termination of Contract:-
- Contract is valid for a period of 15 years.
- In case of termination of contract either of the parties will have to give a written notice at least 6 months prior.
Signature of Company
Great Taste Coffee
Signature of Developer