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Page 5 of 16 |
What can I negotiate? |
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That varies all over the lot. If you want to buy a McDonald's franchise, don't expect McDonald's to modify the agreement's provisions regarding how you can use its Golden Arches trademark, nor should you expect them to allow you to sell Sushi. However, the company may permit you to send more people to its training sessions, or allow you to adjust the size of the signs to meet local zoning ordinances. On the other hand if you will be buying the second "Tony Martin Pizza Factory" franchise, you'll probably have much more negotiating room.
If you review the proposed legal contract with a lawyer you will learn that even certain of the provisions which appear to be "boiler-plate" can be changed, if it is important to you, and not significant to the franchiser. A lawyer can also help you anticipate problems that may arise (e.g. location, equipment, pricing, competition, new products) during the life of a contract, and perhaps solve some now, saving you time, money and headache later. Agreed modifications should be in written, not oral, form.
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