Placeholder Image

Subtitles section Play video

  • royalty fees are typically not negotiable

  • so royalty fee is the monthly or weekly fee you're going to be paying to a

  • franchisor on a consistent basis

  • they're typically not negotiable and if a franchisor is willing to negotiate with

  • you the royalties you charge

  • but not negotiate with another party it creates some disparity within the

  • franchise system itself

  • so to understand if royalties are negotiable for a particular franchisor

  • first you need to work with your lawyer your franchise lawyer

  • to see if they disclose any negotiability in the franchise agreement

  • itself

  • if they disclose a disparity among royalties

  • in the FDD so typically royalties are not negotiable

  • and if a franchisor is willing to negotiate on royalties

  • unless its disclosed in the FDD

  • you should view that as a red flag and be very cautious in dealing

  • with that franchisor

royalty fees are typically not negotiable

Subtitles and vocabulary

Click the word to look it up Click the word to find further inforamtion about it