Despite what some in the industry say, it’s neither illegal nor uncommon for franchisors to negotiate franchise agreements with prospective franchise buyers.

Despite what some in the industry say, it’s neither illegal nor uncommon for franchisors to negotiate franchise agreements with prospective franchise buyers.
This weekend (March 19 and 20) I am speaking at the National Franchise and Business Opportunities Expo at the Convention Center in Denver, Colorado. During my presentation, I will be discussing some of the critical aspects of franchising, and the documents that potential franchisees need to review and understand before signing on the dotted line.
A recent decision by a Court of Appeals in Missouri highlights the importance for franchisors of careful drafting of the arbitration clauses in their franchise agreements. Litigation over issues like this — whether a dispute must be submitted to arbitration or instead whether it can be decided by a court — is a huge drain on the parties’ resources (time and money). A franchisor would be well-advised to think carefully about heavily one-sided arbitration clauses before including them in its agreements.