Myth vs. Reality

Myth #5:

Franchise agreements are offered on a take-it-or-leave-it basis.

In fact, you can and should negotiate the terms of your franchise agreement. Franchise laws in some states, such as California, make it difficult for a franchisor to negotiate any changes in its franchise offering. In that state, a negotiated change must be filed with state officials and displayed in all subsequent UFOCs. In most states, however, changing a franchise agreement is more straightforward. In fact, Virginia requires that the terms of a franchise agreement be negotiable, or the contract may be voided by the franchisee within a certain period of time.

If your attorney advises you that a provision should be changed to protect your interests and the franchisor refuses to consider the change, think hard before going ahead with the deal.

Clearing away the myths allows you to make a realistic evaluation of the investment and is an important first step on the road to franchising success.

« Previous 1 2 3 4 5 Page 6

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the October 1998 print edition of Entrepreneur with the headline: Myth vs. Reality.

Loading the player ...

The Overlooked Advertising Opportunity Small Businesses Should Not Miss

Ads by Google

Share Your Thoughts

Franchise Search

Looking to Start a Business?

Eye Level has opportunities available today.

Request Information

Fund Your Franchise with Guidant

Guidant Financal Learn how to invest your IRA or 401k into a franchise penalty-free. ($50k min)

Featured Franchises For Sale

West Coast Franchise Expo - October 23-25, 2014

From the Entrepreneur Bookstore

Franchise Bible, 7th Edition
Franchise Bible, 7th Edition
By Erwin J. Keup and Peter Keup
More Info