Home Blog Franchise Agreement: Key Terms, Negotiation Tips, Legal Help

Franchise Agreement: Key Terms, Negotiation Tips, Legal Help

This page explains a franchise agreement, how to negotiate it, and how a lawyer from ContractsCounsel can help you navigate the process.

Jump to Section

What is a Franchise Agreement Negotiation and How Can You Make it a Success?

A franchise agreement is a legally-binding document between a franchisor and franchisee. It gives the franchisee the right to use the franchisor’s business model, IP (intellectual property), and brand for a specific amount of time.

This agreement, which provides clarity on issues such as fees, rights, and duties, is sometimes thought of as prioritizing the franchisor. While the franchisor might not be willing to negotiate many terms in the agreement, there is still room for discussions.

By negotiating a franchise agreement, you can achieve the terms you want for running your business and ensure solid working relationships with the franchisor.

Read the rest of this article to explore key terms in franchise agreements, how to negotiate them, and when to consult with a lawyer for assistance with the process.

What are Key Terms in a Franchise Agreement?

A franchise agreement usually contains the following terms. Here’s why they’re important ahead of your negotiations.

  • Terms. This section specifies how long the franchisee will be allowed to use the franchisor’s trademarks. It provides clarity on the rights of both parties.
  • Payments. The franchisee needs to know how they will pay the franchisor for the right to use their trademarks. For example, this could take the form of ongoing payments or royalties to ensure that the franchisor is properly compensated for their brand, while preventing future disputes.
  • Obligations. All mandatory training and guidelines need to be provided to ensure compliance and high standards.
  • Development schedule. The franchisee has a certain amount of time in which to set up the business in a specified location. This section in the contract strives to meet all operational expectations and standards.
  • Insurance. To protect against loss and liability, the insurance term in the agreement will clarify duties of both parties.
  • Termination. A list of times or situations in which either party could end the contract must be included, as well as any consequences, to remove uncertainty.
  • Dispute resolution. If disagreements arise between parties, this section will provide a method for resolving it, such as mediation to keep disputes out of court. This serves to maintain business relationships while avoiding costly litigation.

What are Tips to Negotiate a Franchise Agreement?

If you’re ready to negotiate a franchise agreement, there are some important things to bear in mind.

Ask About Support

As a franchisee, you should think about gaining additional support when you open your business. Some franchisors will be willing to offer you help in the form of personnel or training.

It helps to prepare a list of what you require to meet your business goals. Think about what’s important to you, such as support or monetary assistance with advertising costs.

Think About Defaults

If there are defaults, you usually have a chance to fix them. If you don’t do so within a certain amount of time, this could cause you to lose the franchise. Check what is said about this in your franchise agreement and negotiate the time you have while ensuring they’re reasonable.

Ask About Territory

Territory is one of the most negotiated terms in a franchise agreement. You should seek clarity on this term, such as if your exclusive or protected territory depends on reaching a certain amount of sales or if you can increase the territory size.

Speak to Other Franchisees

It can help you to figure out what’s negotiable with your franchisor by speaking to other franchisees. They will be able to explain specific changes they were able to negotiate, which should help you assess what is possible versus what you shouldn’t waste your time on.

Get Everything in Writing

If you successfully negotiate terms in the agreement, you should put it them writing so that you’re not relying on a verbal agreement. This will ensure both parties have accountability and it will prevent misunderstandings in the future.

Why is Franchise Agreement Negotiation Not Always Possible?

There are some important reasons why a franchisor might not be willing to negotiate. Knowing these can provide a better understanding of their situation.

  • Fairness. If the franchisor has offered all their franchisees the same pricing and other terms, they might feel it’s not fair to allow one to negotiate with them.
  • Legal issues. A franchisor has to stay legally compliant, which includes meeting all laws that demand that they disclose deals or terms they negotiate with parties. While this protects their franchisees, it can make compliance challenging if a franchisor is making use of different terms with different franchisees.
  • Admin. If franchisee contracts vary a lot, this can create issues or complications with the franchise system.

Do You Need a Lawyer for a Franchise Agreement Negotiation?

You don’t always need to hire a lawyer to help you with negotiating a franchise agreement, especially if it’s clearly drafted and easy to understand. If it’s complex, confusing, or you’re unsure of the negotiation process, you should seek legal guidance.

A lawyer can help you in various ways throughout the process. This includes:

  • Reviewing your contract for complex or unclear terms. This will help you to clarify your objectives during the negotiation.
  • Noticing any risks in the contract that could put you at a disadvantage in future. They’ll then help you minimize your liabilities by formulating a negotiation strategy.
  • They’ll explain your duties and financial responsibilities, such as royalties and ongoing payments.
  • They’ll guide you on all trademark and brand guidelines, so that you don’t violate any rules that could result in legal trouble.
  • They’ll negotiate with the other party on your behalf to avoid making any mistakes that result in you not getting the terms you want.
  • They’ll protect your interests during negotiations, such as by guiding the discussion to focus on favorable payment or timeline terms.
  • They’ll check for compliance with all local laws that could affect the agreement.
  • They’ll draft all important documents with agreed-on changes so that you don’t rely on a verbal agreement.

Where Can You Find a Lawyer for a Franchise Agreement Negotiation?

If you seek legal guidance when negotiating your franchise agreement, you can hire a lawyer on ContractsCounsel. This platform, which is one of the largest online legal marketplaces, connects you with vetted lawyers who have the experience to help you through the process.

A lawyer will help you figure out what is negotiable in your franchise agreement, strengthen your case during discussions with the other party, and ensure you minimize your risks.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Susan T. on ContractsCounsel
View Susan
5.0 (4)
Member Since:
February 22, 2024

Susan T.

Attorney
Free Consultation
Baltimore, md
21 Yrs Experience
Licensed in MD, PA
University of baltimore

General practitioner since 2005, general practice; civil disputes, torts.... logo Call us: (410) 878-7006 Menu Services All Maryland and Pennsylvania Legal Services Susan C. Trimble Attorney at Law WHAT WE ARE ABOUT Susan C. Trimble, is an established attorney in the Maryland area. Her work is infused with commitment to her community and family. is tailored to your wants and needs. Here you will find an approachable, personable and conscientious advocate. EDUCATION: Juris Doctorate (JD). University of Baltimore School of Law, Baltimore, Maryland, USA. 2006. Bachelor of Science (BS), English Literature. Towson University, 1989. Associate in Claims, (AIC) certification. Fraud Claims Law Associate, (FCLS) certification. Member of Maryland State and Pennsylvania Bar Associations.

Recent  ContractsCounsel Client  Review:
5.0

"Prompt, professional and excellent completion of this project! Thoroughly pleased! Would highly recommend!"

Leonid G. on ContractsCounsel
View Leonid
5.0 (16)
Member Since:
February 22, 2024

Leonid G.

Principal
Free Consultation
Baton Rouge, Louisiana
8 Yrs Experience
Licensed in LA, MA, NY
New York University School of Law

I have been practicing law since 2018. I used to be a litigator at a nationwide practice before going in-house at a fintech company. I have experience drafting NDAs, SaaS contracts, service agreements, and stock purchase agreements.

Recent  ContractsCounsel Client  Review:
5.0

"I highly recommend working with Leonid for any of your legal needs. Leonid clearly explained the process step by step, made sure to take the time to fully understand my case, and fought hard on our behalf. Hiring Leonid to represent my business not only made the entire process a lot less stressful, but also resulted in saving us some money on our settlement. Thanks again for all the help!"

Aaron S. on ContractsCounsel
View Aaron
Member Since:
January 28, 2024

Aaron S.

Attorney
Free Consultation
Los Angeles, CA
7 Yrs Experience
Licensed in CA, TX
University of Texas School of Law

My passion is protecting the passions of others. I have 5+ years of contract review, and all aspects of entertainment law including negotiation, mediation, intellectual property, copyright, and music licensing. I also have experience working with nonprofits, and small businesses helping with formation, dissolution, partnerships, etc. I am licensed in both Texas and California.

Nuo Jia (Lois) L. on ContractsCounsel
View Nuo Jia (Lois)
Member Since:
February 7, 2024

Nuo Jia (Lois) L.

Managing Member
Free Consultation
New York
12 Yrs Experience
Licensed in MI, NY
University of Detroit Mercy

Attorney Lois Li is a bilingual business and commercial attorney licensed in Michigan, U.S. since 2014, in Ontario, Canada since 2015, and in New York, U.S. since 2020. As an attorney licensed in two countries, Lois leads Alpine Law’s US/China/Canada practice. She is experienced in legal and contractual transactions in both English and Chinese. Lois has over six years of experience in assisting clients with business operations and legal services, and is specialized in advising companies with legal needs in International Business, Securities law, Cryptocurrency – Block chain, and Fin-Tech. Having served as both an outside and an in-house counsel, Lois worked with many startup and small businesses. With a strong understanding of core business and the ability to translate business needs into legal requirements, Lois has assisted many companies to establish policies and procedures, and drafted and negotiated employment and transaction contracts. Further licensed as a Registered Nurse since 2010, Lois specializes in healthcare law and is experienced in FDA, HIPAA, Medicare and Medicaid regulations. She has assisted many businesses in the medical and healthcare industry.

Dany G. on ContractsCounsel
View Dany
Member Since:
February 14, 2024

Dany G.

OnlyFans Attorney
Free Consultation
California
5 Yrs Experience
Licensed in CA, MI
George Washington University Law School

Lawyer Vets APC is a digital legal practice founded on the idea that legal services should be available to all– Not just a privileged few. In support of this mission, we leverage technology to reduce overhead, increase productivity, and put more money in our client's pockets.

Sayema H. on ContractsCounsel
View Sayema
Member Since:
February 6, 2024

Sayema H.

Employment Attorney
Free Consultation
Pasadena, CA and Pleasant Hill, C
24 Yrs Experience
Licensed in CA
UCLA School of Law

Sayema Hameed is an experienced California attorney offering exceptional legal services in the field of employment law. With over two decades of legal experience, Sayema provides her clients with thoughtful and strategic advice and counsel, attention to detail, and high quality work to satisfy client goals and achieve successful outcomes. Helping clients maintain legal compliance, reduce liability exposure, and resolve conflicts efficiently are top priorities of Hameed Law Group. Sayema's practice includes preparation and update of employee handbooks, policies, and contracts, as well providing advice and counsel in all areas of employment in California. Sayema makes it a priority to stay up to date on the latest developments in California employment law. Sayema has been recognized as a Southern California Super Lawyer (2019-2026) and previously as a Rising Star (2009-2017) by Super Lawyers, a rating service of outstanding lawyers who have attained a high-degree of peer recognition and professional achievement.

Ann D. on ContractsCounsel
View Ann
Member Since:
February 10, 2024

Ann D.

Attorney
Free Consultation
greater Philadelphia area
34 Yrs Experience
Licensed in NJ, PA
TEMPLE UNIVERSITY BEASLEY SCHOOL OF LAW PHILADELPHIA, PA

Ann R. Dougherty, Esquire practices in both Pennsylvania and New Jersey with over 25 years of experience and has taught legal writing at the Delaware Law School of Widener University. Ann’s experience includes general liability, commercial property and bad faith insurance coverage litigation. Ann has successfully represented corporations in declaratory judgment matters concerning environmental and asbestos exposure, handled excess recoveries, comprehensive claim reviews and negotiated cost sharing agreements. She has also represented religious organizations including risk management strategies. In addition to practicing law, Ann also teaches introductory Philosophy and Ethics courses. Ann is a member of the Philanthropic Educational Organization for Women and the Daughters of the American Revolution. She has served on the Boards of the American Lung Association of the Mid-Atlantic for Delaware and the Wilmington Ballet Academy.

Lissette E. on ContractsCounsel
View Lissette
Member Since:
February 12, 2024

Lissette E.

Attorney
Free Consultation
Miami
14 Yrs Experience
Licensed in DC, FL, NY
St. Thomas University School of Law

Lissette's legal career, spanning over a decade, is distinguished by her significant achievements in civil litigation and her versatile practice in immigration and corporate law. She has demonstrated a formidable presence in the courtroom, securing a verdict of over two million dollars for a client and settling claims totaling more than three million dollars against insurance companies. She is proficient in complex litigation and corporate matters, assisting corporations with entity formation and regulatory compliance. Her work ensures that businesses not only start on a solid legal foundation but also maintain adherence to legal standards as they grow and evolve. Lissette's tenure at the Department of Justice has also been particularly influential. Working directly with immigration judges, she has developed a nuanced understanding of immigration policies and law, enabling her to craft winning strategies that address the unique challenges faced by her clients. Her career is further enriched by her previous teaching engagements at the Maurice A. Deane School of Law at Hofstra University, where she shared her comprehensive knowledge and experience with aspiring lawyers. Lissette's multifaceted expertise underscores her deep-rooted commitment to legal advocacy and excellence, making her a valued counselor and advocate. Known for her tailored client solutions, Lissette achieves successful outcomes across various legal domains.

Deborah S. on ContractsCounsel
View Deborah
Member Since:
February 23, 2024

Deborah S.

Attorney
Free Consultation
Pittsburgh, PA, United States
18 Yrs Experience
Licensed in PA
Duquesne University

My name is Deborah Schwab, and I am an experienced attorney with a background in real estate, contract negotiation, and corporate governance. Currently, I am a transactional counsel with Priscott Legal, LLC, the partner law firm of Ontra.ai. In this remote role, I represent private equity and VC firms and negotiate a high volume of non-disclosure agreements, joinders, and other legal contracts. Prior to this, I served as legal counsel for PennTex Ventures, LLC, where I was responsible for negotiating, drafting, and reviewing contracts and agreements for sales and acquisition of real estate, lease negotiation, and resolving issues involving ancillary transactions. As the first in-house counsel for PTV, I was responsible for all legal and compliance matters and managed outside legal counsel. Before joining PennTex Ventures, I worked as real estate counsel for 84 Lumber & Nemacolin Woodlands, Inc., where I acquired eleven properties with a portfolio value in excess of $15 million. Prior to this, I spent several years as an attorney and supervisor at CNX/Consol Energy, where I worked as a title attorney, trained and managed a team of title attorneys/analysts, conducted due diligence for large land transactions, and identified business/legal risk exposure for multi-state projects. I received my Juris Doctor from Duquesne University and hold a Post Baccalaureate Paralegal Certificate from the same institution. Additionally, I earned a Bachelor of Arts from the University of Pittsburgh. I am also a court-appointed special advocate working as a volunteer with children who are in the foster care system. Thank you for taking the time to view my profile. I am always open to new opportunities and would be happy to connect with you.

John V. on ContractsCounsel
View John
Member Since:
February 20, 2024

John V.

owner
Free Consultation
Veach Law PLLC
43 Yrs Experience
Licensed in NC, TN, TX
Georgetown Law School

Education: Georgetown Law (83), Yale (75- BA in Economics), Hotchkiss School (1970). Practice areas have included commercial litigation, individual litigation, and securities litigation and arbitration.

V. Yvette S. on ContractsCounsel
View V. Yvette
Member Since:
February 27, 2024

V. Yvette S.

Managing Attorney
Free Consultation
New York, NY
24 Yrs Experience
Licensed in NC, NY
Duke University School of Law

I am a highly skilled attorney, fluent in English and Spanish with 20 years of legal experience and 8 additional years of real estate, project finance, banking, financial, securities, and start-up company experience. I worked 6 years with 2 international law firms and handled extremely complex work for all types of clients, 3 years with a Federal Government Regulator, and 5 years in various compliance management positions at national and international financial institutions. I am licensed in New York and North Carolina. I will handle federal litigation on a non-contingency basis. I also practice Appellate Advocacy for constitutional, employment, consumer, and corporate laws. I am skilled in many different NY and NC laws. I have successfully represented clients with state and federal regulatory investigations. I can help you with the FDA, SEC, OCC, CFPB, FDIC, FR and certain state regulators.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a legal contract?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Franchising Lawyers
FRANCHISE AGREEMENT NEGOTIATION LAWYERS BY CITY
See All Franchise Agreement Negotiation Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city