Virginia-based Area 2 Farms embraces the community supported agriculture model, selling fresh produce directly to consumers. With backing from Reddit co-founder Alexis Ohanian’s 776 Capital, the brand is looking to till more soil in other urban markets by launching a franchise system.
Since its founding in 2023, Area 2 Farms has been selling freshly grown produce directly to customers in the middle of major metro areas.
Oren Falkowitz, the co-founder and CEO of Area 2 Farms
After a few years spent proving the concept, co-founder and CEO Oren Falkowitz decided using franchising to start more farms in other urban areas. The Virginia-based brand announced this week the launch of its franchise system, with plans to target markets in Florida, Georgia, North Carolina, Ohio and Tennessee.
Each indoor farm unit requires less than 5,000 square feet, on average, and a staff between six and eight workers. The farms, which include space for production and distribution, serve customers within a 10-mile radius, and operate with what’s called a community supported agriculture model. Area 2 Farms uses soil-based farming techniques, not hydroponics.
In a CSA structure, customers take home a portion of the crops they purchase ahead of time. If a farm grows carrots, kale, onions and basil, customers will purchase the produce in advance and be able to pick up their share.
Falkowitz said the brand’s origins stem from wanting to move farms into urban areas and create a direct-to-consumer option.
“Part of it goes to how food today is moved,” Falkowitz said. “It’s shipped all across the country, and all across the world. It means farmers are growing things which can survive the journey, but aren’t necessarily the most flavorful or beneficial. What we wanted to do is build farms, which we’ve done in Arlington and Fairfax, that could serve as a model farmers could follow, and franchising is the natural extension of that.”
Ahead of its entry into the franchise space, Area 2 Farms received backing from 776 Capital, an investing firm started by Reddit co-founder Alexis Ohanian. The brand has also brought on Paul Flick, CEO of Premium Service Brands, as a franchise adviser.
Franchising, Falkowitz said, was intended from the beginning, as it was both the easiest way to get into multiple markets and ensure each farm is well taken care of.
“Our farmers will be owners and operators,” Falkowitz said. “They will build out the farms and operate them, from seed to harvest to engaging with the community. We love the opportunity that in every neighborhood, there can be a farmer that people will know who they’re getting their products from. It really drives a strong business value. Customers get a real sense of craftsmanship.”
Because of its focus on franchisee involvement, Falkowitz said the concept is starting with only single-unit deals. In time, he said there may be potential for owners to open additional farms, but said it’s most important for the initial franchisees to be directly involved. Franchisees aren’t expected to come in with agriculture experience either, though it is a plus.
“It’s great when they have that background, but it’s not essential,” Falkowitz said. “We teach them through our training and show what’s necessary to be successful. The critical aspect is getting people who want to own and operate. They have to have proven experience with leading teams and knowing how businesses work, but they also need a strong desire to want and connect with people in their neighborhood and be a focal point for commerce.”
At Area 2 Farms locations, lettuce, herbs, root vegetables and microgreens are grown and sold directly to customers.
The initial investment to open an Area 2 Farms location is between $308,000 and $471,000. Because of the growing demand for the types of products the brand is growing, which includes lettuce, herbs, root vegetables and microgreens, Falkowitz said owners can expect a good return on investment.
“This is a unique offering as it relates to franchising,” Falkowitz said. “I think there’s a lot of demand right now for fresh food. A lot of this coincides with consumers organic products, people getting healthier and an overall focus on quality. Our cities are also transforming in a lot of ways, and there’s demand for cities to provide more goods for people that’s not just another retail or restaurant concept.”
As it looks to expand, Falkowitz said the focus on developing in mainly eastern and southern states is because some of those markets don’t have direct aspect to the types of crops the brand grows. Plus, Falkowitz said he wants owners to be close enough to offer proper support.
“We will do everything to be another farmer behind our farmers and make them successful,” Falkowitz said. “That’s really the way it’s been with farmers forever. They’re always working in cooperation and it works well for agriculture. There are standards in growing, breeding, pest management and marketing. We can provide that support.”