Not all franchisors are enlightened to the fundamental truth that the long-term vitality of franchising depends on the mutual success of franchisors and all of their franchisees. Rather, most franchisors, particularly those who are large and mature, take the position: "It's my trademark, I can do what I want, when I want!"

A prospective franchisee needs to retain an experienced franchise attorney to review all of the terms of the franchise agreement including the renewal provisions.  If the typical renewal provision is in the franchisor's standard form of franchise agreement, try to renegotiate this provision to make it fair.

The typical franchise agreement is usually for an initial term of 5 to 10 years with a right to renew for an additional term. This means that at some point in time the franchise relationship may end if the franchisee does not exercise a right to renew or where the franchisee has no additional right to renew and the franchisor refuses to renew.