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Home Buy a Franchise: FDD Review Negotiating Franchise Fees

Franchise fees are rarely negotiable. In fact, if you are buying a franchise and the franchisor is willing to waive and modify the franchise fee that they are charging you, proceed with caution.

What Do Franchise Fees Cover?

The franchisors initial training and your ability to become part of the franchise system itself. So, if the franchisor is not placing great value on those assets and is willing to negotiate franchise fees, you should worry about whether or not the franchisor really values its own franchise system and how much they invest in franchise training.

The bottom line. Although franchise fees are negotiable, it is not a common industry practice and you should be critical of a franchisor that is freely negotiating its fees.

Are Royalty Fees Negotiable?

Read more about negotiating franchise fees and buying a franchise in Mr. Internicola’s book, “An Entrepreneurs Guide to Purchasing a Business or Franchise”.

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