Negotiating the Terms of Your Franchise Agreement
Negotiating the Terms of Your Franchise Agreement
There are other, more specific reasons that franchisors may not care to negotiate franchise agreement conditions and terms. For example, a franchisor may be concerned by the administrative costs that might be incurred by maintaining different contracts for different franchisees as well as updating details in the UFOC/FDD.
Additionally, inequality among franchisees within a system could be a result of negotiating terms individually: one franchisee may be particularly astute (or have a particularly astute lawyer) and negotiate a markedly better deal than his comrades, which would produce disgruntlement within the system as a whole.
Remember, however, that some franchisors – even large ones – are flexible in certain areas (i.e. training, signage, and territory assignments). Naturally, newer, less established franchisors are quite willing to negotiate regarding a number of terms, including the franchise fee. Should your contract be negotiable, be sure to do your research and contact existing franchisees to ensure that your deal ends up being at least as good as theirs – don’t pay more when you don’t have to!
Negotiating the Terms of Your Franchise Agreement - To learn more about this author, visit Sebastien Page's Website.
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It is of course up to the franchisor to decide whether one not its franchisees can negotiate the terms of a franchise agreement. Unsurprisingly, the majority of large, established franchisors will not allow franchisees to make changes to the franchise contract, since they tend to have a history of successful, content franchisees and are aware that, given the size and success of their concept, there are always potential franchisees willing to buy into their system as is.
There are other, more specific reasons that franchisors may not care to negotiate franchise agreement conditions and terms. For example, a franchisor may be concerned by the administrative costs that might be incurred by maintaining different contracts for different franchisees as well as updating details in the UFOC/FDD.
Additionally, inequality among franchisees within a system could be a result of negotiating terms individually: one franchisee may be particularly astute (or have a particularly astute lawyer) and negotiate a markedly better deal than his comrades, which would produce disgruntlement within the system as a whole.
Remember, however, that some franchisors – even large ones – are flexible in certain areas (i.e. training, signage, and territory assignments). Naturally, newer, less established franchisors are quite willing to negotiate regarding a number of terms, including the franchise fee. Should your contract be negotiable, be sure to do your research and contact existing franchisees to ensure that your deal ends up being at least as good as theirs – don’t pay more when you don’t have to!
Negotiating the Terms of Your Franchise Agreement - To learn more about this author, visit Sebastien Page's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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