Signing a Franchise Agreement?

Consider requesting the franchisor:

• Waive or reduce the initial franchise fee;
• Finance the initial franchise fee; 
• Waive any ancillary fees (such as grand opening advertising); or, 
• Provide a credit for costs of equipment or supplies purchased from the franchisor by building those costs into the initial fee.  

Consider protecting your ability to grow and expand by:

• Increasing the geographical size of the franchise territory; or, 
• Reserving the right to expand into a bordering territory.  

Consider negotiating for maximum flexibility on restrictions placed by the franchisor on the products and services you must buy or sell by:

• Obtaining the right to participate in group purchase programs; 
• Demanding the right to use alternative suppliers; or
• Negotiating for flexibility on the products you can sell.  

Consider making every effort to limit your post-term restrictions (non-competition and non-solicitation) in case things do not go as planned by negotiating by:

• Reducing the duration of post-term restrictions; 
• Reducing the geographical area covered by the post-term restrictions; or 
• Reducing the professional scope of the post-term restrictions.  

Consider negotiating the termination provisions of the franchise agreement to:

• Require the franchisor to provide you with written notice of any breach; 
• Require the franchisor to allows allow an opportunity to cure; 
• Limit liquidated damages available to the franchisor n the event of breach; or 
• Gain rights to terminate the franchise agreement in the event of a franchisor breach.