CAN A FRANCHISE AGREEMENT BE CHANGED?

The franchisor will probably tell you that the Franchise Agreement is a standard form and that everyone signs it. But, there may still be some room for negotiation on points like these:

  • The description of the geographical area in which you will be the company’s only franchise owner.
  • A right to take over adjoining areas if they become available.
  • The number of years the franchise will remain in effect.
  • A right on your part to terminate the Franchise Agreement prior to its expiration date if the business is not succeeding or an unforeseen event occurs.
  • An automatic renewal of the franchise if you have not violated a material term of the Franchise Agreement.
  • Your right to transfer the franchise to your son or daughter without undue interference by the franchisor.
  • Any special arraignment you are able to work out with the franchisor like a waiver of Royalties during the first few months of operation.

Items like these are usually included in a separate piece of paper called a Rider or Addendum attached to the printed form of Franchise Agreement.