The Area Developer Deal Is Pretty Sweet!

Here is how the savviest franchisees have found a way to win big in franchising. Instead of buying a single location, they buy out an entire territory under what’s called an area development deal. This arrangement grants them the right to open a certain number of units across an exclusive territory.

By testing initial locations and opening more depending on their success, area developers can capture brand’s growth in a protected territory. This model provides the optionality that enabled area developers to capture the upside of the brand’s growth, while limiting exposure to the downside. Additionally, they can exercise greater local decision-making compared to single-unit franchisees.

Area Development Deals on Wefranch

Here are some interesting examples of the area development magic in action:

Corporate refugrees, Karim Badani and Rafiq Lightwala: 50 units of Ziggi’s Coffee

Rafiq, a tech founder of Investify, an app that tracks the Pakistani stock exchange, and Karim, a Wells Fargo consultant, and franchisee of Ivy Kids Learning Center, came together to launch 50 Ziggi’s across the Atlanta region. The team loves the Ziggi’s menu and will be launching locations for many years to come. That is the brand’s largest deal to date.

Restaurant veteran, Richard Maddox: 50 of Fuzzy’s Taco Shop

Drawn by the brand’s ability to stay relevant and fresh, restaurant veteran Richard Maddox negotiated an agreement to build all new locations with a drive-thru - a first for the brand.

Fuzzy’s Taco Shop CEO Paul Damico says, “Richard’s experience with fast casual restaurants and franchised brands makes him exactly the type of franchisee we are looking for.”

Corporate refugee, William Jeffress: 20 units of Pet Evolution

Founded in 2012, Pet Evolution started franchising just in 2021. The brand has three locations open but has already approved 11 regional development territories, showcasing its aggressive expansion plans.

Securing an area developer like Jeffress, with 16 years of business management and consulting expertise, positions Pet Evolution to capitalize on this growth trajectory. He will be responsible for opening and selling franchises across Washington, D.C., and Maryland.

Multi-unit, multi-brand franchisee, Danielle Conklin: 17 OHM Fitness

Conklin has owned, operated, and successfully exited several well-known franchise concepts since 2006, including Massage Envy, European Wax Center, and Amazing Lash Studio. She still maintains ownership of two Amazing Lash studios and plans to continue operating that business while growing the Ohm Fitness brand in the San Diego area.

Conklin’s extensive multi-unit franchisee background makes her an ideal area developer for Ohm Fitness as it seeks to expand its footprint. Her proven track record of building and exiting successful franchise businesses provides the operational expertise and resources to help Ohm Fitness rapidly expand its innovative fitness concept.

Venture capitalists, Josh Lamstein and Jeff Parkinson: 10 units of Ninja Nation

Josh and Jeff are working at a venture capital firm KEC Ventures by day, and searching for a great business ownership opportunity by night. Both partners had wanted to go into a non-tech business on the side, and the Ninja Nation was their chance to do so.

Josh and Jeff were drawn to Ninja Nation based on their experiences as parents, their insights as investors, and finally, their connection with the Ninja Nation founder. This deal single-handedly triples the Ninja Nation footprint.

The duo has also secured a top-level manager to launch and operate the portfolio.

Brand’s founder, Bryant Keil: 15 units of Potbelly Sandwich Shop

Bryant Keil has launched over 200 Potbelly’s in his previous tenure as a Founder & CEO of the company. Bryant returns with an area development deal for 15 new locations across Maryland over the next eight years.

Potbelly aims to reach 2,000 units over the next 10 years. Bryant will be pivotal in re-launching the wave of franchise locations.

Real estate developers, Lori and Kerry Dunn: 10 units of Daddy’s Chicken Shack

The Dunns believed Daddy’s Chicken Shack is on track to become viral. They are now develop franchise locations across Scottsdale, Denver, and Orlando.

As area developers, the Dunns will oversee the development of their first location, and secure additional franchisees for the remaining sites in their market. Their wide-ranging real estate experience has uniquely prepared them to handle all stages of the development process and are invaluable assets to accelerate a franchise’s growth and expansion.

Multi-unit franchisee, Cole Walling: 16 units of PetWellClinic

Walling comes from owning and operating Re-Bath franchise locations for over 12 years. He will work alongside PetWell Clinic Phoenix’s CEO, Jeff Walling, and marketing director, Lisa Walling, to develop the 16-unit market. This multi-generational team combines operational, financial, and marketing expertise to drive growth for the PetWell Clinic brand.

By tapping into Walling’s experience and family resources, this area development agreement allows PetWell Clinic to leverage diverse capabilities to expand its footprint with qualified, committed franchisees.

Explore area development deals here.