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An area development agreement grants a franchisee the right to operate multiple franchise units within a designated territory. It is sometimes called a multi-unit development agreement. This agreement specifies the number of franchises the franchisee can open, which could range from three to ten or more. It typically includes a schedule for openings, such as every six or eight months, and defines the territory in which the franchisee can operate, which might be a county, local area, or even a state. The agreement ensures that the franchisee has the authorization to develop multiple units within the specified territory.