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Can a franchise agreement be amended by the franchisor once I’ve signed it?
No. Once you have entered into a franchise agreement the only way that the agreement can be amended is with the consent of all the parties. It is because franchise agreements are long term that franchisors have sought to introduce an element of flexibility by using the operations manual to amend operational issues. But, even here, you would expect the franchise agreement to contain a provision to the effect that nothing in the operations manual will conflict or override what is in the franchise agreement. It is important that when you enter into a franchise agreement you know precisely what you are entering into, so you should be wary of franchise agreements that state the franchisor can alter a term of the agreement. At the end of the term, franchisees have a right to renew the franchise agreement and, of course, there is no guarantee that the renewal franchise agreement will be on the same terms as those that you have entered into originally. Renewal gives the franchisor an opportunity to renew and update the franchise agreement.
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