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

16th street

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

Promising Enterprises

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