Negotiate Franchise Agreement Terms Before You Sign
Strategic legal counsel to identify negotiable terms, request critical addendums, and protect your interests in a rigid contract.
Experience
Counsel
Compliance
Strategy
What’s At Stake
Franchise agreements are drafted to heavily favor the franchisor. Accepting the standard contract without attempting to negotiate can result in:
Our Process
1. Contract Review
Analyze the standard Franchise Agreement and exhibits.
2. Identify Leverage
Determine which clauses are typically negotiable in this system.
3. Strategy Alignment
Align negotiation goals with your specific business objectives.
4. Drafting Requests
Prepare an addendum with requested modifications.
5. Finalization
Review the final execution documents to ensure agreed changes are included.
What We Help With
Targeted negotiation strategies for prospective franchisees.
Addendum Drafting
Draft specific legal addendums to modify the standard franchise agreement.
Personal Guarantee Mitigation
Negotiate caps or limitations on personal guarantees to protect your private assets.
Territory Expansion
Negotiate clearer boundaries, rights of first refusal, or larger protected territories.
Default & Cure Periods
Extend cure periods to give you more time to fix operational issues before termination.
Transfer & Renewal Conditions
Soften the conditions required to sell your business or renew your franchise term.
Multi-Unit Negotiations
Negotiate development schedules and fee structures for area development agreements.
Frequently Asked Questions
Who This Is For
New Franchisees
Buyers seeking to mitigate risk in their first franchise agreement.
Multi-Unit Developers
Investors with leverage negotiating large-scale development rights.
Conversion Franchisees
Independent business owners negotiating terms to join a franchise system.
Resale Buyers
Purchasers negotiating the assumption of an existing franchise agreement.
Identify Negotiation Leverage
Use our interactive red flags checklist to evaluate your Franchise Agreement. Identifying these clauses early is the first step toward negotiating a fairer deal.
Franchise Agreement Red Flags
Use this interactive checklist while reviewing your Franchise Agreement to identify potential liabilities and negotiation points.
Broad guarantees that put your personal assets (home, savings) at risk for the entire term of the agreement.
The franchisor reserves the right to open competing locations or sell online within your market area.
Vague language allowing the franchisor to increase marketing, technology, or training fees without a cap.
Overly broad restrictions that prevent you from working in your industry even after the agreement ends.
The franchisor can terminate the agreement for minor infractions with little or no opportunity to cure.
Requiring you to sign a completely new, potentially less favorable agreement and pay high fees just to renew.
Forcing you to buy supplies exclusively from the franchisor or their affiliates at above-market prices.
The agreement vaguely promises support but doesn't obligate the franchisor to provide specific training or marketing.
Mandatory arbitration in a distant state, stripping your right to a jury trial or class action.
The franchisor has an absolute right to block you from selling your business or demands a massive transfer fee.
If you identified multiple red flags, it is highly recommended to have a franchise attorney review your agreement before signing.
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Don't Accept the Standard Terms Blindly
Protect your interests by negotiating a fairer franchise agreement.
Review Your Agreement