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Can I negotiate the franchise agreement, or is it "take it or leave it?"
In almost every franchise agreement there are terms that can be negotiated – perhaps price, timing of payments, duration of the franchise, the number of people they will train, and territorial exclusivity -- and some that probably cannot be negotiated, such as trademark issues. However, much depends on the relative bargaining position of the franchiser and you as a prospective franchisee, and how astute your lawyer is. Also, you should note that many registration states do not permit a contract to be signed other than the one on file. (However, New York is an exception, in that the state allows a franchiser to give a franchisee a better contract than one that is on file.)
As a first step, make sure the statements in the franchising agreement are consistent with the representations made in the disclosure material. Careful examination of the agreement to verify that what the offering circular promises is contained in the agreement is the first step in the process. |
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