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Are Franchise Agreements Negotiable?

A: There is no law, rule or prohibition preventing franchisors and franchisees from negotiating the terms of a franchise agreement. Franchisors will often say the franchise agreement is non-negotiable. The truth is that some franchisors are willing to negotiate terms and certain terms are more negotiable than others. For example, while franchisors may not be flexible in negotiating their royalty rates, they may be amenable to negotiating the required schedule for opening the franchised business, extending a franchisee’s time to do so.

Factors may include how long the franchisor has been in operation, the size and scope of the franchise system, how eager the franchisor is to sell a franchise and the extent of the franchisee’s business experience or financial backing. Regardless of your level of business experience, when purchasing a franchise, it helps to have an attorney experienced in franchise sales representing your interests.

The Kramer Law Firm LLC
2275 Research Blvd
Suite 500
Rockville, MD 20850

Maryland Small Business Lawyers
Rockville | Bethesda | Gaithersburg | Germantown | Potomac
Washington, DC

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The Kramer Law Firm LLC represents small business clients throughout Washington, D.C. and Montgomery and Prince George's Counties in Maryland, including the communities of Bethesda, Bowie, Chevy Chase, Gaithersburg, Germantown, Laurel, Potomac, Rockville and Silver Spring and all of the surrounding areas.

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