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Log In / Register | Apr 25, 2018

Either way ---the trap is set for the franchisee! Co-Terminus

Solomon says that the most successful franchisors only want the shorter term franchise agreements because if their franchisees are successful, they can change the terms at five years to favor the franchisor even more with no opposition from the franchisees.

The lease, of course, triggers the trap and since leases have been securitized, it appears that there is no way for franchisees to avoid the bad consequences of buying a franchise that has a high failure rate of first owners.

Franchisors suggest the longer lease terms, of course, because they wouldn't want to be in the position, when they are SELLING, of indicating that the business, the franchise, won't last as long as the lease.


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