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FranX | Your FDD means nothing to my lawyer

Killer brands, killer franchisees, news you can use and more.

By Nick Powills1851 Franchise Publisher
Updated 11:11AM 07/02/21

The Next McDonald's (Big Idea)

Close More Deals by Aligning Your Franchise Agreements with Your 5 Year Strategy.


Time kill deals?

It does, but those deal-killing moments are more about a failed process.

Time-killing delays are a function of poor planning and a failure to align your franchise development strategy with your legal process.

You’ve worked on a deal for weeks, the candidate is a great fit, she is ready to sign, but her attorney has some inappropriate negotiation requests.

Your deal is now in the hands of your legal counsel and her response is now a critical part of what, hopefully, is a successful closing process. It’s not the time to prove how smart she is and it’s not the time to let your guard down and make decisions that will negatively impact your brand 5 years from now.

The reality is that your attorney’s negotiations should be as planned as your entire franchise sales process. There should be set rules as to the changes that you are willing to make and those that you cannot compromise on.

Most importantly, there must be a thoughtful process where your attorney creates an environment of engagement for opposing legal counsel and the franchisee candidate. Many deals are saved by a thoughtful explanation as to why a requested legal change cannot be made. Just saying “no!” is not enough.

Many deals are lost because attorneys act, well, like attorneys.

It’s time to involve your legal counsel in your strategic planning and franchise sales process.

They need to be aligned.


News You Can (Actually) Use


Killer Brands

Awakenings: A Winning Retail Strategy


In the era of COVID, shutdowns and challenges, one retail phenomenon has been the surging demand in crystals, gemstones, and holistic living. The headlines are everywhere including a Bloomberg article about why The Market for Crystals is Outshining Diamonds in the Covid Era.

Awakenings is a great opportunity to leverage this growing trend. The team behind Awakenings are thought leaders in the crystal and holistic market and their know-how, inventory systems, and social media exposure create a great post-COVID retail franchise opportunity.


Franchisees Kicking Ass: The Franchisee Is King

Sylvan Learning* is the leading provider of personal learning for students in grades K-12. Brothers Chris and Jano Pittner have been with the Sylvan Learning franchise for 15 years. Currently, the pair owns seven locations of the education brand. Over the years, they’ve been recognized as among the top revenue generators in the 750-unit system.

Sylvan Learning’s goal is to transform how students learn and inspire them to succeed in school and in life. As children of a math teacher, Chris and Jano remember their father as passionate about helping children learn.

“He was all about mastering skills and not so much about the grades,” said Pittner. “The grades will come if the kids really enjoy learning.”


Yo Broker, Sell My Franchise

It looks like broker conferences are making their way back. What does that mean for franchisors hungry for leads? Zoom may not be enough.

Yes, brokers will push the hot brands, and the brand that pays them the highest franchise fee, but they will also push brands based on relationships. It’s not ONLY about the money.

How can you build a relationship with the broker?

Well, certainly wine and dine. And also by listening to their likes and dislikes. And also by giving them the tools to easily understand your why you and your why now.

As you think through your broker strategy for the balance of the year, it may be time to do some good ol relationship-building pre-covid style.


The Bottom Thoughts

A franchisee walks into a room and gently scratches under their chin.

“So, this royalty. What can we do about that?” they ask.

“And this ad fund you speak of, what can we do to adjust that?” they say.

What is negotiable in the FDD? What can franchisors be prepared to review?

The reality is, everything.

But, Charles advises brands to be super careful when negotiating.

“You can devalue your franchise,” he says.

Bottom line, don’t do it. Stay the course and get zees that are not only looking for da deal.

*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.