Negotiating Some Of The Terms Of The Franchise Agreement

I am not happy with all of the terms proposed by the franchisor. Can I negotiate some of the them?

Franchisors are very reluctant to negotiate changes to their system. The standards set by the franchisor are what guarantees that its customers get a consistent product. This consistency also protects good franchisees from the effect that bad franchisees would have on the system’s image, which protects their investment. These are some of the reasons why franchises have proven so successful. There are other management and regulatory reasons for franchisors to resist change.

Even still, ‘no changes’ is not an ironclad rule, even in the most established franchise system… Here are some basic changes you might be able to negotiate:

* The payment terms of your initial franchise fee;
* The size of your protected territory;
* The amount of startup training for you and your staff;
* The amount of field support for your grand opening;
* Your ability to sell your franchise to another franchisee without incurring the transfer fees;
* The franchisor’s right to buy your location if you put it up for sale;
* The standard cure periods if the franchisor finds you in violation of the agreement or standards of operation;
* The elimination of the personal guarantees found in most franchise agreements.

Check whatelse the experts say.