Secrets of successful franchise negotiations
A franchise is essentially an agreement between a franchisor and franchisee. The agreement specifies the rules between the two parties. Both franchisee and franchisor need to abide by the rules, and should also be flexible in their approach.
A franchisor should bring a range of experience, skills and products to the franchisee. Both the sides have to be equally accountable and not cheat or bend their principles in order to get success in the business.
A franchisee should take a good look at the contract. However, a franchisor is always expected to have the final word. While doing a business, talking out the terms is the natural way. It is not necessary that your franchisor will agree to it. However, without asking the questions the franchisee will never know the answers or solutions. A franchisee can also choose not to go for the franchise if the former is not satisfied.
From the franchisors’ point of view, they would like to know what the franchisee hopes to achieve. If the franchisee makes a valid point, the franchisor will listen and accept the proposal. The proposition should be beneficial to both the parties and should make business sense.