Are franchise fees negotiable?
Yes, in many cases they are. Because franchisors are generally in a stronger bargaining position than the franchisee, the franchise agreement is often heavily weighted in favor of the franchisor. However, like any contract, the franchise agreement is a negotiable document. Up-front fees or application fees, monthly royalties, areas of protection, required purchases, or renovations to facilities are all areas that are often negotiated prior to signing the franchise agreement. This is especially true with start-up franchise companies, but applies to any franchisor. If you don’t feel knowledgeable enough about franchise contracts to do this negotiation on your own, seek a professional to help.