The franchisor-franchisee relationship is vital to the success of your business. The details of that relationship are spelled out in what is arguably your most important business document – the franchise agreement. But problems sometimes arise that were difficult to predict. Does that mean you can then modify your franchise agreement?
The Franchise Agreement as a Contract
The agreement between you and your franchisor is a form of contract. As such, contract law applies.
Contract law is extremely complex. We strongly encourage you to have a Florida business attorney or general counsel review any franchise agreement before signing. You might be able to avoid having to modify your franchise agreement by making sure it covers you from the start.
Taking Steps to Modify Your Franchise Agreement
Let’s say you do find that an amendment or alteration to your agreement would be beneficial. You might be able to modify your agreement, but it might not be easy.
Generally, all parties to an agreement have to agree to any modifications or amendments. So, you and your franchisor will have to negotiate any changes. As with all negotiations, you might have to compromise or take less than you hoped to get.
However, altering your franchise agreement might give you some much-needed relief from whatever problem has arisen.
Before you start negotiations or sign an amendment, we encourage you to discuss the situation with your business lawyer. In fact, your attorney might assist with the negotiation process.
Do You Need to Modify Your Franchise Agreement?
Maybe, but every case is different. Discuss the facts of your case with your corporate counsel or business attorney.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.