Before signing any franchise agreement, you hav to make sure about everything is covers. It is a legal contract the binds both parties, the franchiser and franchisee, to satisfy all their obligations to each other.
Before concurring into any franchise agreement you should be comfortable with all the stipulations demanded. To weigh your options and negotiations you must have your franchise attorney with you. Before you arrive to the point where you are negotiating your franchise agreement, there are steps that need to be observed.
WIth the terms and agreement the franchisor must allow negotiations with you. However, some franchisors openly mention that they are do not welcome negotiations while others are okay with it. You must also let your franchise attorney review the agreement so that he may identify any possible issues even though you cannot negotiate the agreement.
In franchise agreement some terms are non-negotiable. Royalty fees, territory size, termination provisions and length of the agreements are a few examples of non-negotiable terms. These are what we call the untouchable provisions. Rarely, franchisors allow to change these provisions.
Make it clear with the franchisor that you will not be held liable for any loss or damages that are not caused by you or your employees directly. To make things clearer, try requesting for a written document signed by both parties.
Do not forget to review the provisions that require you to spend a set amount of money on advertising. During the first few years of operations, franchisors offer discounts.
Be sure to check with your lawyer if you have some inquiries in some sections of the negotiation. Always keep in mind that the franchise agreement always favors the franchisor. Before leaving an imprint on the document, be fully aware of what are the terms and agreement.