Minneapolis franchisee lawyer Ron Gardner explains when a franchisor might negotiate a Franchise Agreement.
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Most people are told by their franchise sales individuals that the franchisor will not negotiate their franchise agreement, that it’s a take it or leave it opportunity. And in some cases that is true, but you have to remember the time that you’re buying a franchise you are the prospective customer. It’s like a car dealer saying we won’t ever negotiate on price or color or model or anything else, it’s this and this is all we have to offer and that’s really, in truth, very rarely the case. Franchisors want your money. They want to put you into the system. They want to show people that the system is growing. And so if you have something to offer the franchisor they will often even when they say they won’t do some negotiation with you. And so if you’re able to get the opinion of a lawyer about this isn’t a particularly good provision in your agreement maybe you should try and work with it, you should at least ask because a franchisor will often make the changes that you need and when they won’t that tells you something about whether or not you want to be in business with these people for 10 or 20 years when they’re not even willing to consider your concerns in the contract that they’re offering you.