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Area Developers pay a development fee of $.05 per capita in their development area, and receive 30% of the initial franchise fee and 2/7ths of the royalty from the locations developed pursuant to their agreements. Noble Roman's, Inc. retains all training and supervision responsibilities, and must approve all franchisees and all locations. In order to maintain the right to develop the territories, each Area Developer has to meet the minimum development schedule as stipulated in their Area Development Agreement. The territory covered by this development schedule has a population of approximately one-half million.
During the last few months the company has announced the signing of eleven other Area Development Agreements for its traditional, dual-branded concept. These include an agreement for 49 units in 15 counties surrounding the Greensboro, Winston-Salem, High Point areas of North Carolina and Virginia, an agreement for 20 units in three counties near Cincinnati, Ohio, an agreement for 25 units in Sacramento County, California, an agreement for an additional 40 units in 21 additional counties surrounding Cincinnati, Ohio, an agreement for 30 units in five counties near Atlanta, Georgia, an agreement for 70 units in three additional counties in Georgia, near Atlanta, an agreement for 52 units in two counties near Dallas, Texas, an agreement for 25 units for Springfield, Missouri and surrounding counties, an agreement for 35 units for Riverside County, California, an agreement for 38 units for San Bernardino County, California, and an agreement for 30 units in Dayton, Ohio and surrounding counties. With the signing of this new agreement, the twelve Area Development Agreements in place thus far call for 429 units over the next six years. In addition, so far this year the company has entered into 62 dual- branded franchise agreements for traditional locations, 25 of which were sold through Area Developers.
The company has franchises in 45 states from coast-to-coast within the United States plus Guam. In addition, it has sold franchise agreements for military bases in Puerto Rico, Guam and Italy, and for entertainment facilities and convenience stores in Canada. In past years the company's growth strategy was to expand primarily through franchising in non-traditional locations. Today, the company is continuing its growth by franchising non-traditional locations. Now, in addition, it is also part of the company's strategy to sell dual-branded Franchise Agreements for traditional locations. The company is selling development territories to Area Developers to spur this growth in stand-alone traditional locations.