It is highly unlikely that a franchisor will reduce current licensing fees. However, in a number of circumstances, a pre-franchise tax can be negotiated. This may be due to the fact that your franchise is a green meadow in the area where the franchisor has not yet worked. When evaluating the types of changes you can request, it is important to have an action plan and (a) compare your expectations regarding what you have been promised and the legal rights you will acquire as a franchisee with (b) what the franchise agreement actually says. In other words, don`t ask for change in negotiations – be strategic. Is it really a take-it or leave-it document? No no. Franchisors will make regular changes to a franchise agreement or offer to offer you some additional benefits, but in general, if these changes have little influence on the consistency of the system. Some of the changes you might want to receive may include: Most franchisors need a personal warranty. The franchisee is personally required to guarantee the obligations of his company under the franchise agreement. When it comes to money, it`s always tricky. but you can always try to change those things. Transfer fees, which come into play only if you decide to sell your site to another franchisee- are potentially tradable.
I found a chance that seems right. My lawyer checked the franchisor`s contracts and found that several areas that they considered important were changed before I signed a contract. But every time I introduced my lawyer`s changes to the franchisor, I ran into a wall. They refuse to discuss most of the amendments that my lawyer recommended and told me that their franchise agreement was simply not ready to negotiate. My lawyer advises me not to sign a contract unless I can pass some of these changes. How do I get these franchisors to listen to my needs? You can find other areas where you want to request changes; but keep your requirements appropriate and limited. The bargaining power you have depends largely on the size and knowledge of the franchise. In the end – comma; if you are not satisfied with something in the agreement and the franchisor is not ready to change it.
Find another franchising option that makes you feel more comfortable. FranNet can help you find the perfect franchise you can connect with. Sign up today for a free FranNet search and franchise tip. Contrary to popular belief, franchise agreements are negotiable, even though it appears that the franchisor has full bargaining power. An experienced West Palm Beach franchise lawyer can help negotiate a better franchise agreement. If you are about to buy a franchise and you are wondering if your franchise agreement can be negotiated or not, you can refer to the following scenario: Often, lawyers who are not familiar with franchising will spend hours checking franchise agreements that detail changes they deem essential for their clients. Second, the franchisee finds that the franchisor is reluctant to make substantial changes. Agreements often diverge because of inexperienced legal advisors, but changes to franchise agreements are possible.
