UFOC Negotiation

Humans are born negotiators. It’s natural. After all, before paper money the only way to acquire goods and services was to barter. Even in present day, it is possible to negotiate prices for things as small as a bushel of tomatoes at your local farmer’s market to the more significant haggle process of purchasing a new car. Why, just yesterday I negotiated the security deposit for my new apartment.

We try to alter situations so that we can feel as if we are getting the best possible deal. Saving money makes us feel good. And the bigger the purchase, the bigger the haggle, the better we feel.

So it is only natural that many potential franchisees would attempt to negotiate the UFOC for the particular franchise they are interested in purchasing. Why not? You have a lawyer (hopefully) and that is what lawyers do, alter contracts. But in a case such as this it is necessary to turn off your primal instincts and continue reading.

There are several states which require franchisors to register their franchise agreements with them. And if the UFOC on file varies at all from the one you are trying to sign chances are the state won’t allow it and the franchisor won’t jeopardize their relationship with the state just to satisfy you.

In some cases, the fact that a franchisor is willing to budge at all with their agreement terms might be a sign of a failing franchise, one that is desperate for money. And the last place you want your investment is in a franchise standing on shaky ground.

Of course there are exceptions to every rule. Younger franchises might be more willing to negotiate. And with any franchise, site location should be primarily up to the franchisee. If it isn’t that is one clause that should be altered.