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Is every franchisee contract the same across the entire network?
It is very unlikely that every franchisee will have the same contract simply because, if a network has been going for a number of years, various amendments will have been made and these will have been incorporated as new franchisees join the system or existing franchisees renew their previous agreements. What should be the case, however, is that any franchisees joining at the same time will join on the same terms. The same applies when renewal comes around - a franchisee doesn’t simply renew the agreement they already have, they renew on the ‘then current’ franchise agreement, which will have the same terms as those for new franchisees. You may also have heard that franchisors should not do special deals for early franchisees, such as appearing to offer discounts on the franchise fees, and nor should they. However, that does not mean that later franchisees may not find themselves with less favourable terms than the early ones. That’s because the early ones were able to secure the ‘then’ deal, but current ones get the ‘now’ deal. The latter may cost more, but that’s probably because the system is more proven.
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