Can You Negotiate Franchise Agreement

Contrary to popular belief, franchise agreements are negotiable, even though it appears that the franchisor carries full bargaining power. An experienced West Palm Beach franchise lawyer can help negotiate a better franchise agreement. The pre-purchase fee for the purchase of a franchise is similar to a gym membership fee. The franchisor does not necessarily rely on it to make a profit, and it can often be reduced. You do not need to accept the franchise agreement as it is. There`s never a hard time asking if you can change certain things; even in the biggest franchise systems; but limit your requirements to things that bring you real benefits without compromising the franchise`s ability to maintain consistency. In addition, it is important to understand that there are certain changes that “good” franchisees should not be prepared to make – legal rights for which it would be unfair and unfair for a franchisor to treat its franchisees differently. Your ability to negotiate changes to your franchise agreement depends on the maturity of the franchisor, the size of the system, the markets you enter, the visibility of the brand in your area, the number of franchisees you purchase, and whether your claims are adequate and supported. This applies not only to economic conditions, but also to many other provisions to protect quality standards and consistency of the franchise system. If you want to buy a McDonald`s site, but you prefer to have blue bows rather than yellow ones, that will not happen. If you have an exclusive area in which other franchisees of the same system are not allowed to work; you can extend it. Instead of just asking for this `comma`; although `comma` you should have research to meet your request, to prove that it would be useful for the franchise to expand your exclusivity. There are more than 1300 franchise systems in Australia, so you probably have a selection of systems in a particular sector.

So you should make sure that the franchise agreement you sign at the end is the agreement that you can follow and respect while having a good working relationship with the franchisor and hopefully earn a profit. There are advantages to joining a system that does not negotiate with you. That could be a good sign. If you are looking for a franchisor that focuses on consistently replicating its brand promise to consumers, then you want the franchisor to have the opportunity to impose its brand standards with all other franchisees.