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”.
- Take Your Business from Local Success to National Franchise with The 90 Day Franchise Launch Program
- An Entrepreneurs Guide to Purchasing a Business or Franchise
- ENDWISE: The Guide to Selling Your Business with Peace of Mind
- The New York and New Jersey Partnership Dispute Guide
- Franchise Counsel Program