
16 Restaurant Franchising
termination of the development agreement, each developed outlet signs a
separate franchise agreement and starts operating as a traditional franchise.
Franchisors can also buy some or all of the developed units. Since it is a
huge task of development, the franchisees should have enough investment
and managerial capabilities. The principle behind this type of franchising is
that it leads to rapid development by someone who is very well acquainted
with the area and has suffi cient construction experience. The franchisor does
not have to monitor the development or get involved in the tedious process of
getting approvals ...