The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Is a cost involved when it comes to renewing a franchise agreement?
Most franchise agreements allow franchisees to renew. The only exceptions are those agreements that have been granted for very long periods, such as McDonald’s, Burger King or KFC agreements. Normally, you would expect a franchisee to have the rights to two automatic renewals if a five-year term is granted, or one automatic renewal if a 10-year term is granted. The renewal clause in the franchise agreement sets out the conditions that must be met to enable a franchisee to serve notice on the franchisor requiring a renewal. Clearly, the franchisee must perform properly under the franchise agreement and, in addition, must enter into a new franchise agreement. It would be considered poor practice for a franchisee to be required to pay the initial fee again on entering into the renewal agreement - quite apart from anything else, most of the initial obligations that are performed by the franchisor, and for which the franchisee is reimbursed by the initial fee, do not have to be performed on a renewal. Generally, it is in the franchisor’s commercial interests for those franchisees who are performing well to continue within the franchise, and so no fees are charged other than a payment in respect of the franchisor’s legal and administrative costs.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Companies to Consider
Broadway Wine Company
£648,000 per annum with a gross profit of £108,216 and EBITDA of £82,956 by Year Three
Yes, via third party
Yes, with Natwest and HSBC
Eggless Cake Shop Franchise
£180,000, net profits of 22%-26% once established
Time For You
Operational breakeven in the first month of trading and return on capital investment from approx.18 months
BT Local Business
£1-2m t/o, 10-20% profit
My Window Cleaner
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added 16 hours ago | 2 min read
Added 3 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news