Are Franchise Royalty Fees Negotiable?
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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
