1851

While franchising is all about sticking to a proven system, individual <a href="https://1851franchise.com/10-must-ask-questions-about-franchise-agreements-2708306">franchise agreements</a> are not always 100% non-negotiable. Franchise agreements are often referred to as “adhesion contracts,” which means they are designed so franchisors can successfully enter into contracts with multiple parties without having to adapt each agreement to fit the needs of the individual owner. While certain core aspects of a franchise agreement, such as the <a href="https://1851franchise.com/how-to-structure-franchise-royalty-fees-2715569">royalty rate</a>, operations or proprietary products, should be set in stone, there are some terms that have the potential for negotiation.&nbsp;These can include:<ul><li>Size of the protected territory</li><li>Grace periods regarding the commencement of royalty obligations</li><li>Liquidated damages and liability for early termination</li><li>Renewal rights</li><li>Transfer rights</li><li>Cure periods for alleged defaults</li><li>Potential rights of first refusal</li></ul>In general, franchisees should approach the negotiation process with realistic expectations. For example, the ability to negotiate changes to the franchise agreement will depend on the maturity of the franchise system and the size of the agreement. A prospective <a href="https://1851franchise.com/multiunitfranchisees">multi-unit operator</a> with a lot to offer will have a much better chance of convincing a legacy franchise brand to make changes to the terms of the agreement.&nbsp;Requests for changes should be kept to a reasonable level, as most franchisors will see it as a red flag if a candidate comes to the table with too many requests. Remember, if a franchisor is willing to negotiate on significant issues, that may actually be a bad sign. Franchisees should want to join a reliable brand, and an overly flexible franchisor could be an indication of potential inconsistencies within the franchise system.Before signing on the dotted line, it is important to enlist the help of a <a href="https://1851franchise.com/2020s-top-franchise-legal-players-2713623">qualified franchise lawyer</a>. These experts will help candidates understand what negotiations (if any) are possible and how to go about asking for changes to the agreement.&nbsp;Once a candidate has signed the franchise agreement, the only way that the agreement can be amended is with the consent of all the parties involved.

Can a Franchise Agreement be Changed?

1851 Franchise

Some terms of the franchise agreement, such as territory and renewal rights, can potentially be negotiated during the due diligence process.

can-a-franchise-agreement-be-changed

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Can a Franchise Agreement be Changed?

MORE STORIES LIKE THIS